Answer to Question #74444 in Microeconomics for Em

Question #74444
21. Which of the following scenarios is consistent with a price change for a normal good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above


22. Which of the following scenarios is consistent with a price change for an inferior good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above
1
Expert's answer
2018-03-12T16:13:07-0400
21 c
22 e

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS