When the Price of a Normal Good Falls, the Substitution

question 232

Multiple Choice

When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

• A) an increase; an increase
• B) an increase; a decrease
• C) a decrease; an increase
• D) a decrease; a decrease

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Definitions:

Obesity

A medical condition characterized by excessive body fat that increases the risk of health problems.

Preeclampsia

A pregnancy complication characterized by high blood pressure and signs of damage to another organ system, most often the liver and kidneys.

Protein In Urine

The presence of abnormally high levels of protein in urine, indicating potential kidney function issues.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical indicator of cardiovascular health.