Suppose That Consumers' Preferences Are Well Behaved in That Properties

question 128

Multiple Choice

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

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

---

Definitions:

Leader's Influence

The impact a leader has on shaping the behavior, attitudes, and performance of others.

Societal Cultural Values

The beliefs, principles, and moral standards shared by people in a particular society that guide behavior and practices.

Organizational Culture

A system of shared assumptions, values, and beliefs, which governs how people behave in organizations, shaping their behavior and understanding of their roles.

GLOBE Project

A research initiative that examines the impact of culture on leadership effectiveness and organizational practices across different countries.