For Inferior Goods

question 178

Multiple Choice

For inferior goods

• A) the substitution and income effects of a price increase will both decrease the quantity of the good demanded.
• B) the substitution and income effects of a price increase will both increase the quantity of the good demanded.
• C) the substitution effect of a price increase will increase the quantity of the good demanded while the income effect of a price increase will decrease the quantity of the good demanded.
• D) the substitution effect of a price increase will decrease the quantity of the good demanded while the income effect of a price increase will increase the quantity of the good demanded.

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Definitions:

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, influencing how organisms develop and function.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.

Fertilisation

The fusion of gametes (egg and sperm) to initiate the development of a new individual organism.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.