Pandalover3173 Pandalover3173

30-05-2024
Business

Answered

Assume that the good is inferior and there is a price increase...what happens?
a. The income effect and substitution effect will both be positive
b. Both income effect and substitution effect are negative.
c. The income effect is positive and the substitution effect is negative.
d. The income effect will be negative and the substitution effect is positive.

Answer :

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