When the Price of a Normal Good Falls, the Substitution

question 84

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

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Definitions:

Export Market

The international market where goods and services produced in one country are sold or distributed to buyers in other countries.

Boycotted

The act of abstaining from using, buying, or dealing with as a means of protest or coercion.

Hattie McDaniel

The first African American to win an Oscar, for her role as Mammy in "Gone with the Wind" (1939), breaking racial barriers in the film industry.

African American

Referring to Americans of African ancestry, and often used within contexts discussing cultural, social, and political issues related to this community.