Multiple Choice
Suppose the price of good X falls. As a result, the quantity demanded for good X increases for a particular consumer. For this consumer, the substitution effect induced the consumer to purchase more X while the income effect induced the consumer to purchase less X. We can infer that X is a(n)
A) normal good.
B) inferior good.
C) Giffen good.
D) luxury good.
Correct Answer:
Verified
Correct Answer:
Verified
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