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:

Rock Avalanche

is a rapid, massive landslide consisting of rock debris flowing down a slope.

Debris Flow

A fast-moving mass of loose mud, rocks, and water that flows down a slope, often triggered by heavy rain or rapid snowmelt.

Rock Slide

A type of mass wasting event where rocks and debris slide rapidly down a slope, often triggered by rain, earthquakes, or volcanic activity.

Slope Failure

A geologic phenomenon where there is a downward movement of soil or rock on unstable slopes, commonly known as landslides.