Q
The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?
-
A
A. Increase quantity demanded, reduce quantity demanded
-
B
B. Increase quantity demanded, increases quantity demanded
-
C
C. Reduce quantity demanded, reduce quantity demanded
-
D
D. Reduce quantity demanded, increase quantity demanded
Correct Answer:
C. C. Reduce quantity demanded, reduce quantity demanded
