Which of the Following Statements Is Correct? for a Good

question 20

Multiple Choice

Which of the following statements is correct? For a good to be a Giffen good we must have:
(i) the substitution effect larger than the income effect
(ii) the income effect larger than the substitution effect
(iii) the good as an inferior good

• A)(i) only
• B)(ii) only
• C)(i) and (iii) only
• D)(ii) and (iii) only

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