Multiple Choice
When a consumer experiences a price decrease for an inferior good, if the income effect is
A) less than the substitution effect, the demand curve will be downward sloping.
B) greater than the substitution effect, the demand curve will be upward sloping.
C) less than the substitution effect, the demand curve will be upward sloping.
D) both a) and b) are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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