If there is a fall in the price of good X and following this, the demand for good X falls, ceteris paribus, what can we conclude? Good X must be a normal good. O Good X could be an inferior good, but cannot be a normal good. O Good X could be a normal or an inferior non-Giffen good, but cannot be a Giffen good. O Good X must be an inferior, Giffen good O Good X must be an inferior, non-Giffen good. O No answer
If there is a fall in the price of good X and following this, the demand for good X falls, ceteris paribus, what can we conclude? Good X must be a normal good. O Good X could be an inferior good, but cannot be a normal good. O Good X could be a normal or an inferior non-Giffen good, but cannot be a Giffen good. O Good X must be an inferior, Giffen good O Good X must be an inferior, non-Giffen good. O No answer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If there is a fall in the price of good X and following this, the demand for good X falls, ceteris paribus, what can we conclude?
Good X must be a normal good.
O Good X could be an inferior good, but cannot be a normal good.
O Good X could be a normal or an inferior non-Giffen good, but cannot be a Giffen good.
O Good X must be an inferior, Giffen good
O Good X must be an inferior, non-Giffen good.
O No answer
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