For inferior goods
A. the substitution and income effects of a price increase will both decrease the quantity of the good demanded.
B. the substitution and income effects of a price increase will both increase the quantity of the good demanded.
C. the substitution effect of a price increase will decrease the quantity of the good demanded while the income effect of a price increase will increase the quantity of the good demanded.
D. the substitution effect of a price increase will increase the quantity of the good demanded while the income effect of a price increase will decrease the quantity of the good demanded.
Answer: C
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Which of the following products allows the seller to identify different groups of consumers (segment the market) and practice price discrimination?
A) clothing items sold through Macy's Department Store B) a cafe latte sold at Starbucks C) tickets to matinee shows at a movie theatre D) a hamburger sold at Burger King
The idea that hysteresis plays a role in macroeconomics implies that
a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive.
Long-run aggregate supply is
A) the possible combinations of real GDP and inputs after full adjustments have been made. B) the extraction of natural resources. C) the real production of goods and services after full adjustments have been made. D) all of the physical and human resources in the economy.
Explain: “An effectively regulated natural monopoly will have trouble attracting capital to sustain and modernize its facilities.”
What will be an ideal response?