Multiple Choice
When a consumer experiences a price increase for an inferior good, if the income effect is
A) greater than the substitution effect, the demand curve will be downward sloping.
B) greater than the substitution effect, the demand curve will be upward sloping.
C) less than the substitution effect, the demand curve will be upward sloping.
D) less than the substitution effect but the substitution effect is positive, the demand curve will be upward sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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