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Identify the Statement That Is False

Question 21

Multiple Choice

Identify the statement that is false.Assume that the price of good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. increases.


A) The substitution effect shows that the consumption of good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. falls, regardless of whether Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. is a normal or inferior good.
B) The income effect shows that the consumption of good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. rises if good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. is an inferior good.
C) The overall effect shows that the consumer purchases more of good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. if good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. is a Giffen good.
D) The overall effect shows that the consumer purchases more of good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. if good Identify the statement that is false.Assume that the price of good increases. A) The substitution effect shows that the consumption of good falls, regardless of whether is a normal or inferior good. B) The income effect shows that the consumption of good rises if good is an inferior good. C) The overall effect shows that the consumer purchases more of good if good is a Giffen good. D) The overall effect shows that the consumer purchases more of good if good is an inferior good. is an inferior good.

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