Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

Why does quantity demanded rise when the price of a normal good decreases?

  • AThe income and substitution effects are both positive.
  • BThe income and substitution effects are both negative.
  • CThe negative income effect is greater than the positive substitution effect.
  • DThe positive income effect is greater than the negative substitution effect.

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