If the price of a haircut increases,
A) haircuts become more expensive relative to other goods and services
B) haircuts become less expensive relative to having a friend cut your hair
C) people will have their hair cut more often
D) haircuts become less expensive relative to other goods and services
E) the budget constraint will shift outward
Correct Answer:
Verified
Q103: The substitution effect measures how
A)the quantity demanded
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Q106: If the price of an inferior good
Q107: The income effect
A)of a price increase works
Q109: An inferior good is one that
A)people consume
Q110: The net change in quantity demanded of
Q111: Steak is a normal good.A decrease in
Q112: Inferior goods typically obey the law of
Q113: For a normal good,the substitution and income
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