Which of the Following Statements Is False

question 39

Multiple Choice

Which of the following statements is false?

• A) If the price of a good falls, the substitution effect will always induce the consumer to consume at least as much of the good as before the price change.
• B) All Giffen good are inferior goods.
• C) As the price of an inferior good increases, the income effect will induce the consumer to consume less of the good.
• D) As the price of a normal good falls, the income effect will result in an increase in consumption of the good.