When a Consumer Experiences a Price Increase for an Inferior

question 117

Multiple Choice

When a consumer experiences a price increase for an inferior good, if the income effect is

• A)greater than the substitution effect, the demand curve will be downward sloping.
• B)greater than the substitution effect, the demand curve will be upward sloping.
• C)less than the substitution effect, the demand curve will be upward sloping.
• D)less than the substitution effect but the substitution effect is positive, the demand curve will be upward sloping.

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Definitions:

Children Leaving

A significant life event for parents, often referred to as "empty nest syndrome," which occurs when their children grow up and leave home for adulthood pursuits.

Presbyopia

A natural condition related to aging in which the eye's lens becomes less flexible, making it difficult to focus on close objects.

Nearsightedness

A common vision condition where objects nearby are seen clearly, but distant objects appear blurred, also known as myopia.

Glaucoma

Irreversible damage to the optic nerve caused by increased pressure in the eye.