Which of the Following Correctly Describes the Result of a Price

question 289

Multiple Choice

Which of the following correctly describes the result of a price increase for an inferior good?

• A)Both the substitution effect and the income effect cause the consumer to buy less of the good.
• B)The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.
• C)The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.
• D)The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

---

Definitions:

La Jaula de Oro

A Spanish term meaning "The Golden Cage," referring to the 2013 Mexican film that depicts the journey of young migrants from Guatemala to the United States.

Los Tigres del Norte

A renowned norteño band from Mexico, famous for their songs that tell stories of life, love, and the experiences of immigrants.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, often to imply a resemblance.

Walmart

Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its large scale and low prices.