To Derive the Demand Curve for a Good,which of the Following

question 2

Multiple Choice

To derive the demand curve for a good,which of the following must be the case

• A)The income effect must be greater than the substitution effect.
• B)The substitution effect must be greater than the income effect.
• C)The substitution effect must be in the same direction as the income effect.
• D)The income effect and the substitution effect may be in the same or in opposite directions.

---

Definitions:

Positive Amount

A value that is greater than zero, indicating a quantity that adds to a total rather than subtracting from it.

Price

The financial charge expected, required, or dispensed as payment for a product.

Marginal Cost Curve

A graph that shows the change in the total cost of producing one additional unit of a good or service.

Average Fixed Cost Curve

A graphical representation showing how the average fixed cost per unit changes as the quantity of output produced changes.