If the Price of a Normal Good Rises,the Income Effect

question 112

Multiple Choice

If the price of a normal good rises,the income effect

• A)will increase consumption of the good and the substitution effect will decrease consumption.
• B)will decrease consumption of the good and the substitution effect will increase consumption.
• C)and the substitution effect will both increase consumption of the good.
• D)and the substitution effect will both decrease consumption of the good.
• E)is always larger than the substitution effect.

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