When the Price of a Product Falls for a Good

Multiple Choice

When the price of a product falls for a good, the

A) income and substitution effects will encourage consumers to purchase more of the product.
B) income and substitution effects will encourage consumers to purchase less of the product.
C) substitution effect will encourage consumers to purchase less of the product, and the income effect will encourage them to purchase more.
D) substitution effect will encourage consumers to purchase more of the product, and the income effect will encourage them to purchase less.