Which of the Following Correctly Describes the Result of a Price

question 289

Multiple Choice

Which of the following correctly describes the result of a price increase for an inferior good?

• A)Both the substitution effect and the income effect cause the consumer to buy less of the good.
• B)The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.
• C)The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.
• D)The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

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Definitions:

Lithium

A chemical element used in the treatment of bipolar disorder and other psychiatric conditions to stabilize mood.

Electroconvulsive Therapy

A psychiatric treatment involving electrically induced seizures for therapeutic effect, often used in severe cases of depression.

Depression

A mental health disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Treatment

Medical care given to a patient for an illness or injury, aiming to relieve symptoms or cure the condition.