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If the Price of an Inferior Good Falls, the Income

question 102

Multiple Choice

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


Definitions:

Anger

A strong feeling of annoyance, displeasure, or hostility.

Optimism

The general tendency to anticipate favorable outcomes or possess a hopeful outlook on life.

Happiness

A state of well-being and contentment characterized by positive or pleasant emotions ranging from contentment to intense joy.

Emotional Intelligence

The skill to recognize, govern, and articulate personal emotions, in addition to conducting oneself sensibly and with empathy in relationships with others.

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