Which of the Following Correctly Describes the Result of a Price

question 289

Multiple Choice

Which of the following correctly describes the result of a price increase for an inferior good?

• A)Both the substitution effect and the income effect cause the consumer to buy less of the good.
• B)The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.
• C)The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.
• D)The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

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Definitions:

Multidimensional Models

Conceptual frameworks or theories that incorporate various dimensions or aspects to explain a phenomenon or behavior.

Genetic Influences

The impact of genes inherited from parents on physical traits, behavior, and susceptibility to certain diseases or disorders.

Interventions

Actions or strategies implemented to improve a situation or address a problem, often in medical, educational, or social contexts.

Incremental Models

Theoretical frameworks that view abilities or traits as subject to change and improvement through effort and experience.