When the price of a normal good decreases, people buy ________ of ...

[kodithompson]

When the price of a normal good decreases, people buy ________ of the good due to ________.
 
  A) more; the substitution effect only
  B) more; the substitution and income effects
  C) less; the substitution effect only
  D) less; the income effect only

Question 2

Suppose your neighbor has a beautiful garden. The benefit that she enjoys from her garden is called ________ and the benefit the rest of the neighborhood enjoys is called ________.
 
  A) marginal private benefit; marginal external benefit
  B) private cost; external cost
  C) marginal social benefit; marginal external benefit
  D) marginal external benefit; marginal social benefit

[katheyjon]

Answer to Question 1

B

Answer to Question 2

A