The price of a good increases relative to other goods.Which one of the following statements must be true? The resulting
A)income effect is negative.
B)income effect is positive.
C)substitution effect is negative.
D)substitution effect is positive.
E)income effect is zero.

Question

Quizplus · Accepted Answer

The Answer of The price of a good increases relative to other goods.Which one of the following statements must be true? The resulting
A)income effect is negative.
B)income effect is positive.
C)substitution effect is negative.
D)substitution effect is positive.
E)income effect is zero.

The Price of a Good Increases Relative to Other Goods