If the Income Effect of a Price Change Is Negative

question 13

Multiple Choice

If the income effect of a price change is negative and larger in absolute terms than the substitution effect,then the demand curve will be

• A)of indeterminate slope.
• B)downward sloping.
• C)horizontal.
• D)vertical.
• E)upward sloping.

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Definitions:

Effect

A change that is a result or consequence of an action or other cause.

Triggering Event

An occurrence that sets off a specific reaction or series of events, often used in psychological or sociological contexts.

Developmental Domains

Areas of growth and development in children and adolescents, including physical, cognitive, emotional, and social development.

Physical

Relating to the body as opposed to the mind or emotions, or pertaining to material things rather than spiritual ones.