When the Price of an Inferior Good Decreases

question 342

Multiple Choice

When the price of an inferior good decreases,

• A)both the income and substitution effects encourage the consumer to purchase more of the good.
• B)both the income and substitution effects encourage the consumer to purchase less of the good.
• C)the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
• D)the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.

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Definitions:

Polymerase Reaction

A laboratory technique used to amplify DNA sequences, commonly known as Polymerase Chain Reaction (PCR).

Nuclear Membrane

The double lipid bilayer membrane which surrounds the genetic material and nucleolus in eukaryotic cells.

Cell Organelle

Specialized subunits within a cell that have specific functions, essential for the cell to operate properly, such as mitochondria and the Golgi apparatus.

Nucleus

The central and most important part of an atom, cell, or object, containing the protons and neutrons in the case of an atom, or genetic material in the case of a cell.