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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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Transcribed Image Text: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.
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