The Demand Curve for a Normal Good Will Always Slope

question 23

Multiple Choice

The demand curve for a normal good will always slope downward because:

• A)the substitution effect and the income effect reinforce each other,and the substitution effect always displays an inverse relation between price and quantity demanded.
• B)the substitution effect and the income effect reinforce each other,and the income effect always displays an inverse relation between price and quantity demanded.
• C)even though the substitution effect and the income effect move in opposite directions,the substitution effect dominates,and it always displays an inverse relation between price and quantity demanded.
• D)even though the substitution effect and the income effect move in opposite directions,the income effect dominates,and it always displays an inverse relation between price and quantity demanded.

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Definitions:

Central Nervous System

The part of the nervous system that includes the brain and spinal cord, responsible for processing and coordinating sensory information and responses.

Somatic Nervous System

A part of the peripheral nervous system that transmits sensory and motor signals to and from the central nervous system, controlling voluntary muscle movements.

Axons

Long, slender projections of a neuron that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.

Nerves

Bundled axons that form neural “cables” connecting the central nervous system with muscles, glands, and sense organs.