The Substitution Effect of a Price Change

question 113

Multiple Choice

The substitution effect of a price change

• A) outweighs the income effect for Giffen goods.
• B) is equal to the income effect for normal goods.
• C) is equal to the income effect for inferior goods.
• D) will result in the consumer buying less of a good at a lower price.
• E) will result in the consumer buying less of a good at a higher price.

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