When We Derive the Demand Curve for a Good, We

question 188

Multiple Choice

When we derive the demand curve for a good, we should remember that the

• A)income effect must be greater than the substitution effect.
• B)substitution effect must be greater than the income effect.
• C)substitution effect must be in the same direction as the income effect.
• D)income effect and the substitution effect may work in the same or in opposite directions.

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