The Substitution Effect Causes More Consumption of a Good at a Lower

question 74

Multiple Choice

The substitution effect causes more consumption of a good at a lower price.When does this statement hold true?

• A)This statement is true only for Giffen goods.
• B)This statement is sometimes true for inferior goods,but never for normal goods.
• C)This statement is always true for normal goods,but never for inferior goods.
• D)This statement is always true regardless of the type of good.

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