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Title: Which of the following correctly describes the result of a price increase for an inferior good? Post by: billyhilly on Oct 9, 2019 Question 1. The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as ▸ the budget constraint. ▸ the price constraint. ▸ economizing behavior. ▸ maximizing behavior. Question 2. Which of the following correctly describes the result of a price increase for an inferior good? ▸ The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase. ▸ Both the substitution effect and the income effect cause the consumer to buy less of the good. ▸ The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good. ▸ The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease. Title: Which of the following correctly describes the result of a price increase for an inferior good? Post by: anuja709 on Oct 9, 2019 Content hidden
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