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Consider a Downward-Sloping Demand Curve

Question 144

Multiple Choice

Consider a downward-sloping demand curve.When the price of a normal good decreases, the income and substitution effects


A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.

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