The Substitution Effect of a Price Change

question 89

Multiple Choice

The substitution effect of a price change

• A)will result in the consumer buying less of a good at a lower price.
• B)will result in the consumer buying less of a good at a higher price.
• C)outweighs the income effect for Giffen goods.
• D)is equal to the income effect for normal goods.
• E)is equal to the income effect for inferior goods.

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