This topic contains a solution. Click here to go to the answer

Author Question: Consider a downward-sloping demand curve. When the price of an inferior good decreases, the income ... (Read 78 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
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
Answer to Question 1

C

Answer to Question 2

A




bobbie

  • Member
  • Posts: 592
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

For a complete list of videos, visit our video library