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.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer.

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often to protect creditors.

Assigned

Attributed or designated to a particular task, resource, or responsibility within an organization or process.

Cash Dividend

A payment made by a company out of its earnings to its shareholders, typically in the form of cash.