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For a Normal Good,the Income and Substitution Effects Work in the ______

Question 6

Multiple Choice

For a normal good,the income and substitution effects work in the ______ direction.Therefore,a change in price produces a ______ change in uncompensated demand than in compensated demand.


A) opposite; smaller
B) opposite; larger
C) same; smaller
D) same; larger

Correct Answer:

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