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.

---

Definitions:

Simple Random Samples

A subset of a population in which every member has an equal chance of being selected, ensuring that the sample represents the population well.

Distribution of Sample Means

Describes the dispersion or spread of the means of multiple samples drawn from the same population, often approximated by a normal distribution.

Sampled Population

The subset of individuals from a larger population used in a statistical study.

Standard Error

A measure of the accuracy with which a sample distribution represents a population by using the standard deviation of the sample means.