Multiple Choice
Suppose potatoes are an inferior good and the price of potatoes decreases.Then:
A) the substitution effect will cause a decrease in the consumption of potatoes.
B) the income effect will cause an increase in the consumption of potatoes.
C) the income effect will cause a decrease in the consumption of potatoes.
D) the substitution effect will cause an decrease in the consumption of potatoes and the income effect will cause a decrease in the consumption of potatoes
Correct Answer:
Verified
Correct Answer:
Verified
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