If a good is an inferior good (but not Giffen), which of the following statements is FALSE? Select one: O a. The substitution effect from a rise in its price causes a fall in demand. o b. The substitution effect from a fall in its price must be smaller than the income effect. O c. The income effect from a rise in its price causes a rise in demand. o d. The income elasticity of demand for the good is negative.

If a good is an inferior good (but not Giffen), which of the following statements is FALSE? Select one: O a. The substitution effect from a rise in its price causes a fall in demand. o b. The substitution effect from a fall in its price must be smaller than the income effect. O c. The income effect from a rise in its price causes a rise in demand. o d. The income elasticity of demand for the good is negative.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5CQQ

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