Consider a Downward-Sloping Demand Curve

question 303

Multiple Choice

Consider a downward-sloping demand curve.When the price of a normal good increases, the income and substitution effects

• A)work in the same direction to increase quantity demanded.
• B)work in the same direction to decrease quantity demanded.
• C)work in opposite directions and quantity demanded increases.
• D)work in opposite directions and quantity demanded decreases.

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