Assume X and Y are the only two goods a person consumes.If after a rise in the quantity demanded of Y increases,one could say
A) the income effect dominates the substitution effect for Y.
B) the substitution effect dominates the income effect for Y.
C) it is impossible to determine whether the substitution or income effect dominates for Y.
D) None of the above.

Question

Assume X and Y are the only two goods a person consumes.If after a rise in  the quantity demanded of Y increases,one could say
A) the income effect dominates the substitution effect for Y. 
B) the substitution effect dominates the income effect for Y. 
C) it is impossible to determine whether the substitution or income effect dominates for Y. 
D) None of the above.

Quizplus · Accepted Answer

The Answer of Assume X and Y are the only two goods a person consumes.If after a rise in  the quantity demanded of Y increases,one could say
A) the income effect dominates the substitution effect for Y. 
B) the substitution effect dominates the income effect for Y. 
C) it is impossible to determine whether the substitution or income effect dominates for Y. 
D) None of the above.

Assume X and Y Are the Only Two Goods a Person