Although Some of the Statements Below Are True of Both

question 91

Multiple Choice

Although some of the statements below are true of both normal goods and inferior goods, only one of the statements defines a normal good.Which one?

• A)Normal goods are those for which the income effect is positive.
• B)Normal goods are those for which the income effect is negative.
• C)Normal goods are those for which the substitution effect overrides the income effect.
• D)Normal goods are those for which the income effect overrides the substitution effect.
• E)Normal goods are those for which demand increases when price increases.

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Definitions:

Output

The amount of something produced by a person, machine, or industry.

Large Dams

Substantial barriers constructed across rivers or waterways to control the flow or storage of water.

Hydroelectric Power

The generation of electricity by converting the kinetic energy of moving water, typically through the use of dams or diversionary structures.

Environmental Impacts

Environmental impacts are the changes to the environment caused by human activities or natural disasters, which can be positive or negative and affect air, water, soil, and ecosystems.