Which of the Following Statements Is False

question 70

Multiple Choice

Which of the following statements is false?

• A) The income effect of normal goods counters the substitution effect so the demand curve is upsloping.
• B) The income effect and the substitution effect reinforce each other when there are price changes for a normal good.
• C) The income effect represents the decrease in quantity demanded caused by the implicit change in income due to a fall in the price of an inferior good but not for a normal good.
• D) The substitution effect represents the change in quantity demanded solely due to a change in the relative price of a good.

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Definitions:

Market Segment

A collective of individuals or entities united by one or more common attributes, resulting in comparable needs for certain products.

Co-branding

A marketing strategy involving the collaboration of two or more brands to create a product or service that leverages the reputation of each brand.

Joint Product

Products that are produced together in the same production process and whose quantities are not independently controllable.

Strong Brands

Brands that have achieved a high level of consumer recognition, loyalty, and perceived quality, contributing to competitive advantage.