When the Price of a Normal Good Increases

question 93

Multiple Choice

When the price of a normal good increases,

• A)both the income and substitution effects encourage the consumer to purchase more of the good.
• B)both the income and substitution effects encourage the consumer to purchase less of the good.
• C)the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good.
• D)the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.

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Definitions:

Persuasiveness

The capability to convince others to agree with a viewpoint, accept a proposal, or engage in a certain action through argument or appeal.

Facial Features

Distinct attributes of the face such as eyes, nose, mouth, which are often used in identifying individuals.

Masculine

Qualities, attributes, or roles traditionally associated with men and boys, including strength, assertiveness, and dominance, among others.

Asymmetrical

Lacking symmetry; having parts that fail to correspond to one another in shape, size, or arrangement.