Multiple Choice
Which of the following is a false statement about the substitution effect associated with an increase in the price of good x?
A) operates in the same direction as the income effect if it is normal
B) is dominated by the income effect if it is a Giffen good
C) dominates the income effect if x is a Giffen good
D) does not lead the individual to buy more x
Correct Answer:
Verified
Correct Answer:
Verified
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