This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Consider a downward-sloping demand curve. When the price of an inferior good decreases, the income ... (Read 124 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
on: Jun 29, 2018
Consider a downward-sloping demand curve. When the price of an inferior good decreases, the income and substitution effects
 
  A) work in the same direction to increase quantity demanded.
  B) work in the same direction to decrease quantity demanded.
  C) work in opposite directions and quantity demanded increases.
  D) work in opposite directions and quantity demanded decreases.

Question 2

When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the
 
  A) output effect. B) substitution effect. C) income effect. D) price effect.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Rilsmarie951

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A


bobbie

  • Member
  • Posts: 592
Reply 2 on: Jun 29, 2018
:D TYSM

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

A Dose-Response Curve A Dose-Response Curve
Alan Price - Poor People Alan Price - Poor People
Good Old War - Part Of Me [Audio] Good Old War - Part Of Me [Audio]
Too Much Alcohol Costs You Good Nutrition Too Much Alcohol Costs You Good Nutrition
The original Supply and Demand graph The original Supply and Demand graph
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Import of Dietary Glucose from Intestines to Bloodstream

For a complete list of videos, visit our video library