The Demand Curve for a Normal Good Will Always Slope

question 23

Multiple Choice

The demand curve for a normal good will always slope downward because:

• A)the substitution effect and the income effect reinforce each other,and the substitution effect always displays an inverse relation between price and quantity demanded.
• B)the substitution effect and the income effect reinforce each other,and the income effect always displays an inverse relation between price and quantity demanded.
• C)even though the substitution effect and the income effect move in opposite directions,the substitution effect dominates,and it always displays an inverse relation between price and quantity demanded.
• D)even though the substitution effect and the income effect move in opposite directions,the income effect dominates,and it always displays an inverse relation between price and quantity demanded.

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Definitions:

Dopamine Neurons

Brain cells that produce and release dopamine, a neurotransmitter involved in movement, motivation, and reward.

Nicotine

A stimulant and addictive substance found naturally in tobacco.

Addiction

A psychological and physical inability to stop consuming a substance or doing an activity despite it causing psychological and physical harm.

Major Life Stressors

Large disruptions, especially unpredictable and uncontrollable catastrophic events, that affect central areas of people’s lives.