3) Assuming Good A and Good B satisfy the Law of Demand, how many of the following cenarios indicate that Good A is a normal good? The derivative of Good A's demand function with respect to income is positive When the price of Good B increases, Good A's income effect is negative. When the price of Good B changes, Good A's income and substitution effect are in the same direction. А. 1 В. 2 С. D. None of the above statements are true.
3) Assuming Good A and Good B satisfy the Law of Demand, how many of the following cenarios indicate that Good A is a normal good? The derivative of Good A's demand function with respect to income is positive When the price of Good B increases, Good A's income effect is negative. When the price of Good B changes, Good A's income and substitution effect are in the same direction. А. 1 В. 2 С. D. None of the above statements are true.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![[G] Assuming Good A and Good B satisfy the Law of Demand, how many of the following
scenarios indicate that Good A is a normal good?
The derivative of Good A's demand function with respect to income is positive
When the price of Good B increases, Good A's income effect is negative.
When the price of Good B changes, Good A's income and substitution effect are in the same
direction.
А.
В.
С.
D.
None of the above statements are true.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d3531bd-00b5-460a-b9e4-26ddda7ae32a%2F8cc198ef-11e5-43b9-b42e-3a27c34a8593%2Fyy2zs3o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[G] Assuming Good A and Good B satisfy the Law of Demand, how many of the following
scenarios indicate that Good A is a normal good?
The derivative of Good A's demand function with respect to income is positive
When the price of Good B increases, Good A's income effect is negative.
When the price of Good B changes, Good A's income and substitution effect are in the same
direction.
А.
В.
С.
D.
None of the above statements are true.
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