Which of the Following Statements Is FALSE

question 384

Multiple Choice

Which of the following statements is FALSE?

• A) When the relative price of a good falls, the substitution effect always leads the consumer to substitute more of that good for the other good.
• B) For a normal good, the income effect reinforces the substitution effect.
• C) For an inferior good, the income effect offsets the substitution effect.
• D) For an inferior good, the income effect is positive.

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Definitions:

Dullness

A lack of sharpness or vibrancy in sensation, often used in medical contexts to describe a type of sound heard during percussion of the body that suggests an underlying condition or abnormality.

Alcohol Intake

The consumption of beverages that contain ethanol, commonly referred to as alcohol, which can have various health impacts.

Fluid Wave

A physical examination technique used to detect ascites, where a wave-like motion is felt when tapping on one side of the abdomen while the other side is compressed.