When the Price of a Normal Good Increases

Multiple Choice

When the price of a normal good increases,

A) both the income and substitution effects encourage the consumer to purchase more of the good.
B) both the income and substitution effects encourage the consumer to purchase less of the good.
C) the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
D) the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.