Suppose That Consumers' Preferences Are Well Behaved in That Properties

question 55

Multiple Choice

Suppose that consumers' preferences are well behaved in that properties 4-1 - 4-4 are satisfied.Furthermore, assume that both X and Y are normal goods and that the price of good Y increases.Then, which of the following effect is known with certainty.

• A)the income and substitution effect reinforce one another leading to an overall increase in the consumption of good X.
• B)the income and substitution effect reinforce one another leading to an overall decrease in the consumption of good X.
• C)there will be an indeterminate effect on the consumption of good X.
• D)the income and substitution effect will reinforce one another leading to an overall increase in the consumption of good Y.

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Definitions:

Manual Motor Starters

Devices designed to manually switch on and off motors while providing overload protection to prevent motor damage.

Motor Starters

Devices engineered to control the electrical current for starting and stopping motors to protect them from damage.

Contactor Unit

A contactor unit is an electromechanical switch used for switching an electrical power circuit, similar to a relay but with higher current ratings.

Overload Unit

An overload unit is a device or component in an electric motor or circuit designed to protect against excessive current load that could cause overheating or damage.