Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

The table sets out substitution and income effects for a normal good and for an inferior good as the good’s price changes. Which combination is correct?

  • Ainferior; fall; negative; positive
  • Binferior; rise; negative; negative
  • Cnormal; fall; positive; positive
  • Dnormal; rise; positive; negative

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