Which of the Following Statements Is FALSE

question 268

Multiple Choice

Which of the following statements is FALSE?

• A) The income effect of normal goods counters the substitution effect, so the demand curve slopes upward.
• B) The income effect and the substitution effect reinforce each other when the price of a normal good changes.
• C) The income effect represents the decrease in quantity demanded caused by the implicit change in income due to a fall in the price of an inferior good but not of a normal good.
• D) The substitution effect reflects the change in quantity demanded solely because of a change in the relative price of a good.

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Definitions:

Tolerance

The allowable variation in a component’s specified value, such as resistance or capacitance, indicating the accuracy of its manufacture.

Color Bands

Colored stripes on components such as resistors that represent numbers according to a standardized code, used to indicate their value, tolerance, and sometimes temperature coefficient.

Ohmic Value

The resistance value of a component or material, typically measured in Ohms (Ω), indicating how much it resists the flow of electric current.

Fixed

In an electrical or mechanical context, "fixed" typically refers to components that are stationary, unchanging, or permanently set in a particular configuration.