Author Question: Gasoline is a normal good. If the price of gasoline falls, a consumer buys more gasoline because of ... (Read 715 times)

cabate · **on:** Jun 29, 2018

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