If a Good Is Normal,then the Income Effect Is _____

question 56

Multiple Choice

If a good is normal,then the income effect is _____ for a price increase and _____ for a price decrease.

• A) positive; negative
• B) positive; positive
• C) negative; negative
• D) negative; positive

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Definitions:

"Staying" Power

The ability of an individual or entity to endure an adverse condition or situation for a long period without succumbing.

Frozen Meal

A pre-cooked and packaged meal that is preserved through freezing and can be reheated for consumption.

Marginal Cost

The expense associated with creating an extra unit of a good or service.

"Staying" Power

"Staying" power refers to the ability of a person, organization, or product to endure or remain popular over a significant period of time.