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 97 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
Excellent

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

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?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

The titration curve of the buffer acetic acid (CH3COOH) The titration curve of the buffer acetic acid (CH3COOH)
The medical assisting profession offers many settings in which to pursue your career. Good communica The medical assisting profession offers many settings in which to pursue your career. Good communica
Rice noodles are a good gluten-free substitute for pasta Rice noodles are a good gluten-free substitute for pasta
Nuts are also a good source of B group vitamins (including folate), and vitamin E Nuts are also a good source of B group vitamins (including folate), and vitamin E
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
Video: Body plan of euglena Animation

For a complete list of videos, visit our video library