If,because of a Price Change,both the Income and Substitution Effects

question 141

Multiple Choice

If,because of a price change,both the income and substitution effects are strong for a normal good,this segment of the demand curve must be:

• A)unit-elastic.
• B)vertical.
• C)relatively price-elastic.
• D)horizontal.

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Definitions:

Tangible Assets

Physical assets that have a defined monetary value and can be touched or seen, such as machinery, buildings, and vehicles.

Tangible Asset

Assets that have physical substance and can be touched, such as machinery, buildings, and land.

Inventory

A complete list or stock of goods and materials held by a business to meet customer demand.

Tangible Assets

Assets that have a physical form such as property, plant, and equipment.