Q620
Which one of the following statement is true?
A.
In case of inferior goods, the income effect is negative, although the substitution effect is positive
AnswerB.
In inferior goods, the income and substitution effect is positive
C.
In inferior goods, the income and substitution effect are negative
D.
In case of inferior goods, the income effect is positive, although the substitution effect is negative
Answer: Option A
Solution
Answer: Option A
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