Multiple Choice
Suppose the price of good x falls.As a result,the quantity demanded for good x increases for a particular consumer.For this consumer,the substitution effect induced the consumer to purchase more x while the income effect induced the consumer to purchase less x.We can infer that
A) x is a normal good.
B) x is an inferior good.
C) x is a Giffen good.
D) x is a luxury good.
Correct Answer:
Verified
Correct Answer:
Verified
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