Multiple Choice
Suppose the price of an inferior good X, that follows the law of demand, increases. In this case, the substitution effect states that the consumer purchases _____ of good X, and the total effect is _____ in consumption of good X.
A) more; an increase
B) more; a decrease
C) less; an increase
D) less; a decrease
Correct Answer:
Verified
Correct Answer:
Verified
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