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When the Price of a Normal Good Falls, the Substitution

question 232

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When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.


Definitions:

Internal Customer

An individual or department within an organization that receives services or products from another department or individual in the same organization.

External Customer

Individuals or entities outside of an organization who use or purchase its products or services.

Good Feelings

A state of emotional positivity, satisfaction, or happiness experienced by individuals or groups.

Employee Assistance Programs

Work-based intervention programs designed to identify and assist employees in resolving personal problems that may negatively impact their job performance, health, or well-being.

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