Question
If ice cream is an inferiorgood, how will the substitution and income effects of a decrease in the price of ice cream impact the quantity
If ice cream is an inferiorgood, how will the substitution and income effects of a decrease in the price of ice cream impact the quantity of ice cream Abbypurchases?
A.
The substitution effect encourages Abby to purchase more icecream, and the income effect encourages Abby to purchase more ice cream.
B.
The substitution effect encourages Abby to purchase less icecream, and the income effect encourages Abby to purchase more ice cream.
C.
The substitution effect encourages Abby to purchase less icecream, and the income effect encourages Abby to purchase less ice cream.
D.
The substitution effect encourages Abby to purchase more icecream, and the income effect encourages Abby to purchase less ice cream.
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