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lstar1993 lstar1993
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4 years ago

Question 1.

Consider a downward-sloping demand curve. When the price of an inferior good increases, the income and substitution effects



▸

work in the same direction to increase quantity demanded.



▸

work in the same direction to decrease quantity demanded.



▸

work in opposite directions and quantity demanded increases.



▸

work in opposite directions and quantity demanded decreases.



Question 2.

Consider a downward-sloping demand curve. When the price of an inferior good decreases, the income and substitution effects



▸

work in the same direction to increase quantity demanded.



▸

work in the same direction to decrease quantity demanded.



▸

work in opposite directions and quantity demanded increases.



▸

work in opposite directions and quantity demanded decreases.

Textbook 
InMicro

InMicro


Edition: 1st
Authors:
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n00835996n00835996
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lstar1993 Author
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#2
4 years ago
Exactly what I needed for my project, TYSM
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