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jadebat389Lv1
6 Oct 2020
When the price of a normal good falls,
- both the income and substitution effects combine to cause the quantity demanded to increase
- the substitution effect will cause people to buy more because the good is relatively less expensive
- the income effect will cause people to buy more because of the increased purchasing power associated with the lower price
- all the above answers are correct
When the price of a normal good falls,
- both the income and substitution effects combine to cause the quantity demanded to increase
- the substitution effect will cause people to buy more because the good is relatively less expensive
- the income effect will cause people to buy more because of the increased purchasing power associated with the lower price
- all the above answers are correct
viclere2005Lv10
9 May 2023
Chika IlonahLv10
1 Nov 2020
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