Author Question: Almost all event markets forecast accurately. Indicate whether the statement is true or ... (Read 73 times)

abc · **on:** Jun 30, 2018

Almost all event markets forecast accurately.
Indicate whether the statement is true or false

Question 2

Which of the following statements concerning income and substitution effects is not true?
a. Income and substitution effects cause the demand curve to slope downward.
b. When the price of a good falls, real purchasing power increases and consumers can purchase more of all goods.
c. The substitution effect describes the situation in which more of the good whose price has fallen is purchased, and less of all other goods is purchased.
d. A price decrease of one good cannot cause the income effect.
e. Income and substitution effects are related to diminishing marginal utility and consumer equilibrium.