Gasoline is a normal good. If the price of gasoline falls, a ...

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Gasoline is a normal good. If the price of gasoline falls, a consumer buys more gasoline because of
 
  A) only an income effect.
  B) only a substitution effect.
  C) an increase in the marginal rate of substitution.
  D) both an income effect and a substitution effect.

Question 2

Firms organize production by using a mixture of two systems: (1 ) command systems and (2 ) incentive systems.
 
  Indicate whether the statement is true or false

[okolip]

Answer to Question 1

D

Answer to Question 2

TRUE

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Thanks for the timely response, appreciate it

[EAN94]

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