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:

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Legally binding agreements between two or more parties that outline terms and conditions for the exchange of services, goods, or obligations.

Equitable Remedy

A type of judicial relief that requires a party to act or refrain from acting in a certain way, often employed when monetary damages are insufficient for justice.

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Something that is enforced or applied authoritatively, often without the consent of those affected.

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