When the Price of a Normal Good Decreases

question 60

Multiple Choice

When the price of a normal good decreases,

• 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.

---

Definitions:

Formal Reports

Detailed and structured documents presenting information, analysis, or findings, typically used in academic, business, or professional contexts.

Written Medium

A means of communication that involves the representation of language in a textual form, such as books, articles, or online content.

Confidential

Information or documents that are private or secret and not to be shared with unauthorized individuals.

Immediate Feedback

Instantaneous response or assessment given to a statement, performance, or action, facilitating rapid improvement.