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If xx Is an Inferior Good and the Price Of xx Falls
A) the Substitution Effect Will Induce the Consumer to x

Question 2

Multiple Choice

If xx is an inferior good and the price of xx falls


A) the substitution effect will induce the consumer to purchase more xx and the income effect will induce the consumer to purchase more xx .
B) the substitution effect will induce the consumer to purchase more xx and the income effect will induce the consumer to purchase less xx .
C) the substitution effect will induce the consumer to purchase less xx and the income effect will induce the consumer to purchase more xx .
D) the substitution effect will induce the consumer to purchase less xx and the income effect will induce the consumer to purchase less xx .

Correct Answer:

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