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cyanrat164Lv1
6 Oct 2020
What happens 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 effect will cause people to buy more because of the increased purchasing power associated with the lower price.
d. All of the answers are correct.
What happens 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 effect will cause people to buy more because of the increased purchasing power associated with the lower price.
d. All of the answers are correct.
Retselisitsoe PokothoaneLv10
30 Oct 2020
