When the Price of a Normal Good Falls, the Substitution

question 400

Multiple Choice

When the price of a normal good falls, the substitution effect leads to _ in the quantity purchased and the income effect leads to in the quantity purchased.

• A) an increase; a decrease
• B) a decrease; an increase
• C) a decrease; a decrease
• D) an increase; an increase

---

Definitions:

Raymond Cattell

Was a psychologist known for his work in personality theory, including the development of the 16 personality factor model.

Intellectual Development

The development of cognitive abilities and intellectual capacities, including thinking, problem-solving, and understanding concepts.

Cross-sequential

A research method that combines both cross-sectional and longitudinal designs to study changes over time in a faster and more efficient manner.

Successive Cohort

Groups of individuals born in consecutive chronological segments, often studied to observe changes over time in a particular population.