When the Price of an Inferior Good Decreases

question 342

Multiple Choice

When the price of an inferior good decreases,

• A)both the income and substitution effects encourage the consumer to purchase more of the good.
• B)both the income and substitution effects encourage the consumer to purchase less of the good.
• C)the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
• D)the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.

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Definitions:

Lipoproteins

Lipoproteins are particles made of lipids and proteins that transport fats around the body in the blood.

Golgi Apparatus

An organelle found in most eukaryotic cells, involved in modifying, sorting, and packaging proteins and lipids for secretion or delivery to other organelles.

Proteins and Lipids

Essential biomolecules; proteins are polymers of amino acids functioning in structure and enzymes, while lipids are fatty acids and their derivatives, serving as energy storage and cell membrane components.

Microtubules

Cylindrical structures in the cytoplasm of eukaryotic cells, playing roles in cell shape, intracellular transport, and cell division.