Which of the Following Statements Is FALSE

question 384

Multiple Choice

Which of the following statements is FALSE?

• A) When the relative price of a good falls, the substitution effect always leads the consumer to substitute more of that good for the other good.
• B) For a normal good, the income effect reinforces the substitution effect.
• C) For an inferior good, the income effect offsets the substitution effect.
• D) For an inferior good, the income effect is positive.

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Contract Cancellations

The termination of a contractual agreement, releasing all parties from their obligations under the contract.

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The collection of rules and decisions made by administrative agencies to fill in particular details missing from constitutions and statutes.