When the Price of an Inferior Good Increases

question 516

Multiple Choice

When the price of an inferior 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:

Myers-Briggs Type Indicator

A self-report inventory designed to identify a person's personality type, strengths, and preferences, based on Jungian psychology.

Sixteen Personality Factor

The Sixteen Personality Factor Questionnaire is a psychological assessment tool that measures an individual's personality traits across 16 different factors.

Cattell

A psychologist known for his work in personality theory and the development of psychometric tests.

Psychological Types

Categories or groups of individuals based on their psychological characteristics, often used in personality assessment.