Solved

Assume X and Y Are the Only Two Goods a Person

Question 18

Multiple Choice

Assume x and y are the only two goods a person consumes.If after a rise in px the quantity demanded of y increases,one could say


A) the income effect dominates the substitution effect.
B) the substitution effect dominates the income effect.
C) it is still impossible to determine whether the substitution or income effect dominates.
D) none of these answers is correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents