The Demand Curve for a Normal Good Will Always Slope

question 23

Multiple Choice

The demand curve for a normal good will always slope downward because:

• A)the substitution effect and the income effect reinforce each other,and the substitution effect always displays an inverse relation between price and quantity demanded.
• B)the substitution effect and the income effect reinforce each other,and the income effect always displays an inverse relation between price and quantity demanded.
• C)even though the substitution effect and the income effect move in opposite directions,the substitution effect dominates,and it always displays an inverse relation between price and quantity demanded.
• D)even though the substitution effect and the income effect move in opposite directions,the income effect dominates,and it always displays an inverse relation between price and quantity demanded.