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What Must Occur for a Good to Violate the Law

Question 52

Multiple Choice

What must occur for a good to violate the Law of Demand?


A) The good must be normal and the income effect must be larger than the substitution effect.
B) The good must be normal and the substitution effect must be larger than the income effect.
C) The good must be inferior and the income effect must be larger than the substitution effect.
D) The good must be inferior and the substitution effect must be larger than the income effect.

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