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rubycod879Lv1
6 Oct 2020
When the price of a normal good falls,
a. both the income and substitution effects combine to cause the quantity demanded to increase.
b. the substitution effect will cause people to buy more because the good is relatively less expensive.
c. the income effects will cause people to buy more because of the increased purchasing power associated with lower price.
d. All of the above answer are correct.
When the price of a normal good falls,
a. both the income and substitution effects combine to cause the quantity demanded to increase.
b. the substitution effect will cause people to buy more because the good is relatively less expensive.
c. the income effects will cause people to buy more because of the increased purchasing power associated with lower price.
d. All of the above answer are correct.
Anne Gillian DueroLv10
5 Nov 2020
