When a Consumer Experiences a Price Increase for an Inferior

question 1

Multiple Choice

When a consumer experiences a price increase for an inferior good,it is possible that the income effect is

• A)greater than the substitution effect and the demand curve will be downward sloping.
• B)greater than the substitution effect and the demand curve will be upward sloping.
• C)less than the substitution effect and the demand curve will be upward sloping.
• D)less than the substitution effect but the substitution effect is positive and the demand curve will be upward sloping.

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Definitions:

Quarrelsome

Quarrelsome describes a person prone to arguments or disputes, often engaging in hostile exchanges.

Psychoanalytic Theory

is a method of psychology and psychotherapy developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Inferiority Complex

A psychological condition where an individual feels a deep sense of inadequacy and inferiority, often leading to overcompensation or withdrawal.

Alfred Adler

Alfred Adler was an Austrian medical doctor and psychotherapist who founded the school of individual psychology, emphasizing the importance of the feeling of inferiority and the striving for superiority in shaping personality.