The income effect
A) moves in the opposite direction from the substitution effect for an inferior good.
B) moves in the same direction as the substitution effect for an inferior good.
C) relates to increases in nominal rather than real income.
D) is always greater than the substitution effect.
Correct Answer:
Verified
Q4: Price elasticity of demand is the
A)percentage change
Q5: The price consumption curve shows us
A)whether we
Q6: The point on a linear demand curve
Q7: For demand function P = 24 -
Q8: Suppose the price of public transportation increases.
Q10: One aggregates individual demand curves by adding
A)horizontally.
B)vertically.
C)horizontally
Q11: Which of the following is likely to
Q12: Comparing the income effects between salt and
Q13: The income consumption curve
A)always goes through the
Q14: If the demand for widgets is inelastic,
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