For What Type of Good Do the Substitution and Income

question 74

Multiple Choice

For what type of good do the substitution and income effects work in opposite directions?

• A) Normal goods
• B) Inferior goods
• C) Giffen goods
• D) The substitution and income effects never work in opposite directions.

---

Definitions:

Far Objects

Items or entities that are physically distant from the observer or point of reference.

Sequences

Arrangements of objects, numbers, or events in a specific order following a particular rule.

Candle's Light

The visible light emitted by a candle during burning, often used metaphorically to symbolize guidance or hope.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's ability to focus.