When a Consumer Experiences a Price Increase for an Inferior

question 117

Multiple Choice

When a consumer experiences a price increase for an inferior good, if the income effect is

• A)greater than the substitution effect, the demand curve will be downward sloping.
• B)greater than the substitution effect, the demand curve will be upward sloping.
• C)less than the substitution effect, the demand curve will be upward sloping.
• D)less than the substitution effect but the substitution effect is positive, the demand curve will be upward sloping.

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Definitions:

Molecular Weight

The sum of the atomic weights of all atoms in a molecule, indicating the mass of the molecule relative to the mass of a carbon-12 atom.

Aqueous Solution

A solution in which the solvent is water, commonly used in a wide range of chemical and biological processes.

Solute

A substance that is dissolved in another substance (solvent), forming a solution, which can be a solid, liquid, or gas.

Solvent-water

A substance, in which water acts as the dissolving agent or medium, primarily for solutes.