Question
If the price of a good increases, the income effect: A. reinforces the substitution effect if the good is normal. B.offsets the substitution effect if
If the price of a good increases, the income effect:
A. reinforces the substitution effect if the good is normal.
B.offsets the substitution effect if the good is inferior.
C.shows the change in the quantity demanded of the good, income held constant.
D.A and B
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
