Suppose the Price of Good X Falls

question 481

Multiple Choice

Suppose the price of good X falls. As a result, the quantity demanded for good X increases for a particular consumer. For this consumer, the substitution effect induced the consumer to purchase more X while the income effect induced the consumer to purchase less X. We can infer that X is a(n)

• A)normal good.
• B)inferior good.
• C)Giffen good.
• D)luxury good.

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