Suppose the Price of Good X Falls

question 481

Multiple Choice

Suppose the price of good X falls. As a result, the quantity demanded for good X increases for a particular consumer. For this consumer, the substitution effect induced the consumer to purchase more X while the income effect induced the consumer to purchase less X. We can infer that X is a(n)

• A)normal good.
• B)inferior good.
• C)Giffen good.
• D)luxury good.

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Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Bully

An individual who uses strength or power to harm or intimidate those who are weaker.

Academic Performance

The measure of a student's scholastic activities and achievements, often reflected in grades and academic standing.

Experimenter Bias

involves the influence of the researcher's expectations or preferences on the outcomes of an experiment, potentially skewing the results.