If the Price of an Inferior Good Rises, the Income

question 157

Multiple Choice

If the price of an inferior good rises, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.

• A) more; more
• B) more; less
• C) less; more
• D) less; less

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Definitions:

Cu

The chemical symbol for copper, a ductile metal with very high thermal and electrical conductivity.

Ag

The chemical symbol for silver, a precious metal with high thermal and electrical conductivity.

Au

The chemical symbol for gold, a precious metal with high conductivity, resistance to corrosion, and extensive use in electronics, jewelry, and as a monetary standard.

Fractures

Breaks or cracks in rock which can occur naturally through geological processes or artificially through human activity.