When the Price of a Normal Good Decreases

question 60

Multiple Choice

When the price of a normal 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:

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The process of economic, social, and technological progression and improvement in a society or an organization.

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Challenges or obstacles that impede the effective conveyance of training content.

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