Which of the Following Correctly Describes the Result of a Price

question 289

Multiple Choice

Which of the following correctly describes the result of a price increase for an inferior good?

• A)Both the substitution effect and the income effect cause the consumer to buy less of the good.
• B)The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.
• C)The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.
• D)The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

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Definitions:

Iris

The hue-bearing region of the eye that adjusts how wide the pupil is and governs the quantity of light entering.

Inner Lining

Refers to the innermost layer of a structure, such as the lining of organs, vessels, or cavities in the body.

Light Sensitive

Having a heightened responsiveness or susceptibility to the effects of light.

Retina

At the eye's back, there's a sheet of light-sensitive cells that start nerve responses, traveling through the optic nerve to the brain, where they result in the formation of a visual picture.