When the Price of a Normal Good Increases

question 93

Multiple Choice

When the price of a normal good increases,

• A)both the income and substitution effects encourage the consumer to purchase more of the good.
• B)both the income and substitution effects encourage the consumer to purchase less of the good.
• C)the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
• D)the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.

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Definitions:

Organizational Behaviour

The study of both group and individual performance and activity within an organization, focusing on understanding, predicting, and influencing human behavior.

Personality Tests

Assessments used to evaluate individuals' character traits, dispositions, and tendencies to predict behavior.

Dispositional Approach

Individuals possess stable traits or characteristics that influence their attitudes and behaviours.

Psychological Characteristics

Attributes of individuals that influence their behavior, emotions, and thought processes, such as personality traits, intelligence, and attitudes.