If Good a Is a Normal Good and Its Price

question 152

Multiple Choice

If good A is a normal good and its price decreases, the _____ effect will cause a(n) _____ in consumption of it.

• A) substitution; decrease
• B) income; decrease
• C) income; increase
• D) substitution effect and the income; decrease

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Definitions:

Incorrect Majority

The phenomenon where a group wrongfully influences an individual or minority to conform to a mistaken or inaccurate viewpoint.

Groupthink

A mental effect experienced by a group, where the pursuit of agreement or uniformity leads to illogical or inefficient outcomes in decision-making.

Irving Janis

A psychologist best known for his research on group dynamics, including the concept of "groupthink."

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.