Suppose That Consumers' Preferences Are Well Behaved in That Properties

question 157

Multiple Choice

Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied.Furthermore,assume that X is a normal good,Y is an inferior good,and the price of good X increases.Then the substitution effect will lead consumers to consume:

• A) more of good X and more of good Y.
• B) less of good X and more of good Y.
• C) less of good X and less of good Y.
• D) more of good X and less of good Y.

---

Definitions:

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis by capturing light energy.

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, a photosynthetic adaptation to arid conditions where stomata open at night to minimize water loss.

Malate

A substance found in many fruits and vegetables, serving as an intermediate in the citric acid cycle within cellular metabolism.

Vacuoles

Membrane-bound compartments within a cell that serve various functions such as storing nutrients or waste products.