If a Good Is a Normal Good and Its Price

Multiple Choice

If a good is a normal good and its price decreases, the income effect:

A) and the substitution effect work in the same direction to increase quantity demanded.
B) and the substitution effect cancel each other out, and there is no change in quantity demanded.
C) has a stronger and negative effect on quantity demanded than the substitution effect.
D) has a negative effect on quantity demanded, but the substitution effect dominates, and the quantity demanded increases.