Author Question: For goods on which a relatively small portion of income is expended, _____. a. income effects ... (Read 355 times)

Medesa · **on:** Jul 1, 2018

For goods on which a relatively small portion of income is expended, _____.

a. income effects will be small relative to substitution effects
b. income effects will be large relative to substitution effects
c. income effects will be about the same as substitution effects
d. there will be no income effects.

Question 2

If an individual's budget constraint shifts, the individual's changes in consumption can be broken down into _____ and _____ effects.

a. budget; consumption
b. income; substitution
c. utility; indifference
d. wealth; savings