If a Good Is Inferior and Demand Is Downward Sloping

question 39

Multiple Choice

If a good is inferior and demand is downward sloping, then:

• A)the substitution effect is equal to the income effect.
• B)the substitution effect is larger than the income effect.
• C)price and quantity demanded move in the same direction.
• D)the substitution effect is smaller than the income effect.

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Definitions:

Psychological Dependence

Psychological dependence involves a perceived need to use a substance or engage in a behavior to achieve a sense of emotional or psychological well-being.

Caffeine Withdrawal

Symptoms experienced by individuals who abruptly stop consuming caffeine after prolonged use, including headaches, fatigue, and irritability.

Social Phenomenon

A pattern of behavior that is common within a society or among social groups, often influencing and shaping culture and community interactions.

Unresponsive

The state of not reacting or showing any response to stimuli or attempts at communication, often used in medical contexts.