Multiple Choice
Consider the income and substitution effects corresponding to an increase in the price of X.Which of the following are not possible?
A) The substitution effect on X is positive and the income effect is negative.
B) The substitution effect on X is positive and the income effect is negative
C) The substitution effect on Y is negative and the income effect on X in negative.
D) The income effect on both goods is positive.
Correct Answer:

Verified
Correct Answer:
Verified
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