Suppose That Consumers' Preferences Are Well Behaved in That Properties

question 138

Multiple Choice

Suppose that consumers' preferences are well behaved in that properties 4-1 - 4-4 are satisfied.Furthermore, assume goods X and Y are normal goods and the price of good X decreases.Then the substitution effect will lead consumers to consume

• A)more of good X and more of good Y.
• B)less of good X and more of good Y.
• C)less of good X and less of good Y.
• D)more of good X and less of good Y.

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Definitions:

Pastoral Society

A social system based on the raising and herding of livestock as a primary economic activity.

Division of Labor

An economic concept that divides tasks in a production process, where specialization increases efficiency and productivity.

Master Status

Some characteristic of a person that overrides all other features of the person’s identity.

Having a Disability

refers to the condition of having physical, mental, or emotional impairments that substantially limit one or more major life activities.