The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?

Question

The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?

Answer 1

A. increase quantity demanded, reduce quantity demanded
B. increase quantity demanded, increases quantity demanded
C. reduce quantity demanded, reduce quantity demanded
D. reduce quantity demanded, increase quantity demanded

Correct Answer: reduce quantity demanded, reduce quantity demanded ✔

Last Updated: June 18, 2019

The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?

The income effect of a price increase of a normal good is to of that good and the substitution effect is to _ of that good?