A Compensated Increase in the Price of a Good

Multiple Choice

A compensated increase in the price of a good:

A) causes the consumer to buy more of the good if the income effect is larger than the substitution effect.
B) causes the consumer to buy more of the good if the income effect is smaller than the substitution effect.
C) always causes the consumer to buy more of that good.
D) always causes the consumer to buy less of that good.