Multiple Choice
If a good is Giffen and its price increases,
A) the income effect will be positive and the substitution effect will be positive.
B) the income effect will be negative and the substitution effect will be negative.
C) the income effect will be positive and the substitution effect will be negative.
D) the income effect will be negative and the substitution effect will be positive.
Correct Answer:
Verified
Correct Answer:
Verified
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