If the Income Effect and Substitution Effect Work in the Same

question 28

Multiple Choice

If the income effect and substitution effect work in the same direction, then the good in question is a:

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

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Definitions:

Piano Notes

Musical sounds produced by the keys of a piano, each representing a different pitch.

Sound Waves

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Kinesthesis

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Receptor Cells

Specialized cells found in the sensory organs that respond to specific stimuli like light, sound, or chemicals, and send signals to the brain.