When the price of a good changes, the amount of that good that buyers wish to buy changes:
A)solely because of the substitution effect.
B)solely because of the income effect.
C)because of both the substitution and the income effects.
D)only if the substitution effect and the income effect do not cancel out each other.

Question

Quizplus · Accepted Answer

Both the substitution effect and the income effect impact the quantity demanded when price changes.

When the Price of a Good Changes, the Amount of That