This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When the price of a good falls, the income effect for a normal good implies that people buy A) ... (Read 146 times)

LaDunn

  • Hero Member
  • *****
  • Posts: 526
on: Jun 29, 2018
When the price of a good falls, the income effect for a normal good implies that people buy
 
  A) less of that good because the relative price of the good has fallen.
  B) more of that good because the relative price of the good has risen.
  C) less of that good because they cannot afford to buy all the things they previously bought.
  D) more of that good because they can afford to buy more of all the things they previously bought.

Question 2

When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.
 
  A) an increase; an increase
  B) an increase; a decrease
  C) a decrease; an increase
  D) a decrease; a decrease


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

6ana001

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

You are a life saver.

Answer to Question 2

B


LaDunn

  • Member
  • Posts: 526
Reply 2 on: Jun 29, 2018
Gracias!

kswal303

  • Member
  • Posts: 316
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Monstrous people from distant lands depicted in a fifteenth-century European woodcut. Monstrous people from distant lands depicted in a fifteenth-century European woodcut.
Normal right tympanic membrane Normal right tympanic membrane
Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1 Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1
Children with autism generally prefer interacting with objects over people. Children with autism generally prefer interacting with objects over people.
Older people who exercise cognitive skills, like these chess players, retain those skills well into ... Older people who exercise cognitive skills, like these chess players, retain those skills well into ...
Three types of “end feel” in normal joints. Three types of “end feel” in normal joints.
Video: Methods that regulate pH

For a complete list of videos, visit our video library