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When a Consumer Experiences a Price Increase for an Inferior

Question 105

Multiple Choice
When a consumer experiences a price increase for an inferior good,which situation is possible A)The income effect is greater than the substitution effect, and the demand curve will be downward sloping. B)The income effect is greater than the substitution effect, and the demand curve will be upward sloping. C)The income effect is less than the substitution effect, and the demand curve will be upward sloping. D)The income effect is less than the substitution effect, and the demand curve will be downward sloping.

When a consumer experiences a price increase for an inferior good,which situation is possible


A) The income effect is greater than the substitution effect, and the demand curve will be downward sloping.
B) The income effect is greater than the substitution effect, and the demand curve will be upward sloping.
C) The income effect is less than the substitution effect, and the demand curve will be upward sloping.
D) The income effect is less than the substitution effect, and the demand curve will be downward sloping.

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