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11 Aug 2018
6) Which statement is true for an inferior good? A) The income effect works in the opposite direction to the substitution effect. B) The good is of poor workmanship. The substitution effect is positive; as price rises, consumption increases. D) The income effect is absent; as income increases, consumption remains constant. E) The income effect works in the same direction as the substitution effect.
6) Which statement is true for an inferior good? A) The income effect works in the opposite direction to the substitution effect. B) The good is of poor workmanship. The substitution effect is positive; as price rises, consumption increases. D) The income effect is absent; as income increases, consumption remains constant. E) The income effect works in the same direction as the substitution effect.
Lelia LubowitzLv2
12 Aug 2018
