rogersdanny521 rogersdanny521
  • 14-10-2019
  • Biology
contestada

The income effect causes quantity demanded to​ ________ when the price of a normal good​ decreases

Respuesta :

t2jonathan2
t2jonathan2 t2jonathan2
  • 14-10-2019

For normal goods, the income effect and the substitution effect both work in the same direction; a decrease in the relative price of the good will result in an increase in quantity demanded both because the good is now cheaper than substitute goods, and because the lower price means that consumers have a greater total.

Answer Link

Otras preguntas

Name the image by the number of sides and whether it is concave or convex.
Which symptoms are negative effects of performance-enhancing drugs?
La función () = 120 + 30 (2) modela la presión de la sangre (en milímetros de mercurio) para una persona que tiene una presión (alta) de 150/90 y donde t esta
At Fairview middle school 75 being members need to raise a total of $8250 for a trip so far they have is $3120 how much money in dollars per bandmember still ne
I need help anyone please
what is the sum of this geometric series​
What will marks account balance be in 6 years
According to the theory of plate tectonics, the lithosphere is separated into sections that are called tectonic plates. These plates move in different direction
What kind of person is most likely to hold a right-wing ideology? a conservative a liberal a moderate a progressive
A benefit of a diet high in carbohydrates is Group of answer choices increasing muscle glycogen storage to prevent muscle fatigue. changing carbohydrates into f