Question

30) If the price of an inferior good rises, the income effect A) will have an uncertain effect on consumption of the good, and the substitution effect will decrease consumption. B) will decrease consumption of the good, and the substitution effect will decrease consumption. C) and the substitution effect will both increase consumption of the good. D) and the substitution effect will both decrease consumption of the good. E) will increase consumption of the good and the substitution effect will decrease consumption.