Multiple Choice
If the price of good X rises and X is a normal good, then
A) the income effect will induce the consumer to demand less of X and the substitution effect will induce him to demand more.
B) the income effect will induce the consumer to demand more of X and the substitution effect will induce him to demand less.
C) the income and substitution effects will both induce the consumer to demand more of X.
D) the income and substitution effects will both induce the consumer to demand less of X.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Use the following graph showing two budget
Q3: F A. The rate at which a
Q4: refer to the following figure:<br> <img
Q5: Fill-in-the-Blank<br>-The rate at which a consumer is
Q6: The following questions refer to the following
Q7: refer to the following graphs:<br> <br> <img
Q8: If the price of a good decreases,
Q9: The following questions refer to the following
Q10: refer to the following graph:<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10434/.jpg" alt="refer
Q11: Fill-in-the-Blank<br>-If a consumer is choosing the levels