With Only Two Goods,if the Income Effect Is in the Same

question 1

Multiple Choice

With only two goods,if the income effect is in the same direction as the substitution effect then the good is

• A)normal
• B)inferior but not Giffen
• C)Giffen
• D)There is not enough information to answer.

---

Definitions:

Promotion

The act of advancing someone to a higher rank or position, often in a professional context, or the activities intended to increase awareness or sales of a product.

Stress

A psychological and physical response to perceived challenges or threats, involving emotional, cognitive, and biological reactions.

Causal Factor

An element or condition that directly influences the occurrence of an event or the state of a system.

Grilled-cheese Sandwiches

A popular comfort food consisting of melted cheese between slices of toasted bread, typically grilled or fried until golden brown.