Identify the Statement That Is True $x$ Increases
A)If X Is a Normal Good, Both the Income

question 68

Multiple Choice

Identify the statement that is true. Assume that the price of good $x$ increases.

• A)If x is a normal good, both the income and substitution effects lead to a fall in consumption of x.
• B)The substitution effect leads to a decrease in consumption of x only if x is an inferior good.
• C)If x is a normal good, the substitution effect alone leads to a decrease in consumption of x.
• D)If x is an inferior good, the income effect alone leads to a decrease in consumption of good x.

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Definitions:

Alarm Reaction

The initial stage of the body's response to stress, activating the sympathetic nervous system and the release of stress hormones.

GAS

General Adaptation Syndrome, a three-stage process that describes the physiological changes the body goes through when under stress.

Acute Reaction

A sudden and severe response, either physiological or psychological, to an external stimulus or situation.

Positive Stressor

A beneficial stress that motivates or enhances psychological growth or physical health.