If the compensated and Marshallian demand curves for a good intersect,at that point the Marshallian curve will be
A)flatter if this is a normal good.
B)steeper if this is a normal good.
C)flatter if this is an inferior good.
D)horizontal.

Question

Quizplus · Accepted Answer

At the intersection point, the compensated demand curve reflects only the substitution effect, while the Marshallian demand curve reflects both the substitution and income effects. For a normal good, the income effect is positive, making the Marshallian demand curve flatter than the compensated demand curve.

If the Compensated and Marshallian Demand Curves for a Good