Consider the Income and Substitution Effects of Price Changes

question 7

Multiple Choice

Consider the income and substitution effects of price changes.If the price of a normal good changes,the income effect of the price change will

• A)always be larger than the substitution effect.
• B)always be to increase quantity demanded.
• C)reinforce the substitution effect.
• D)produce a positively sloped demand curve.
• E)oppose the substitution effect.

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