Suppose the Price of Good X Falls

question 9

Multiple Choice

Suppose the price of good x falls.As a result,the quantity demanded for good x increases for a particular consumer.For this consumer,the substitution effect induced the consumer to purchase more x while the income effect induced the consumer to purchase less x.We can infer that

• A)x is a normal good.
• B)x is an inferior good.
• C)x is a Giffen good.
• D)x is a luxury good.

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Definitions:

Bromination

A chemical reaction involving the addition of bromine to a substrate, often for the purposes of halogenation in organic chemistry.

Nitrobenzene

An organic compound consisting of a benzene ring substituted with a nitro group (-NO2), used in the synthesis of aniline.

Anisole

An organic compound, specifically an ether, derived from methoxybenzene, used in perfume and pharmaceuticals.

Chlorobenzene

An aromatic organic compound with a chlorine atom substituting one hydrogen atom in benzene, used in the production of pesticides and industrial solvents.