Which Statement Is True for an Inferior Good

question 82

Multiple Choice

Which statement is true for an inferior good?

• A)The substitution effect is positive;as price rises,consumption increases.
• B)The income effect is absent;as income increases,consumption remains constant.
• C)The income effect works in the opposite direction to the substitution effect.
• D)The good is of poor workmanship.
• E)The income effect works in the same direction as the substitution effect.

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Definitions:

Acetylcholine

A neurotransmitter in the nervous system involved in muscle activation, memory, and learning.

Muscles

Tissues in the body that have the ability to contract, enabling movement of the body and its parts.

Neurotransmitter

Chemical messengers that transmit signals across synapses from one neuron to another in the brain and nervous system.

Gap Junction

Specialized intercellular connections between a multitude of animal cell-types that directly connect the cytoplasm of two cells, allowing various molecules, ions and electrical impulses to directly pass through a regulated gate between cells.