When the income effect and the substitution effect move in the same direction, what is the result on the good whose price has fallen?
A) Demand increases.
B) Quantity demanded increases.
C) Demand falls.
D) Quantity demanded falls.

Question

Quizplus · Accepted Answer

The Answer of When the income effect and the substitution effect move in the same direction, what is the result on the good whose price has fallen?
A) Demand increases.
B) Quantity demanded increases.
C) Demand falls.
D) Quantity demanded falls.

When the Income Effect and the Substitution Effect Move in the Same