When a Consumer Experiences a Price Increase for an Inferior

question 56

Multiple Choice

When a consumer experiences a price increase for an inferior good,which situation is possible

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

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Definitions:

Butane

A gaseous hydrocarbon with the formula \(C_4H_{10}\), used as fuel and a precursor in organic chemistry.

Newman Structure

A way to represent the spatial arrangement of atoms around a carbon-carbon single bond, illustrating staggered or eclipsed conformations.

Line-Angle Structure

A simplified drawing of a molecule where lines represent bonds and vertices represent carbon atoms, excluding hydrogen atoms for clarity.

Structure

The arrangement of and relations between the parts or elements of something complex.