L5 Flashcards by Alexander Fransson | Brainscape

Q

Ehat happens to demand if prices increase in a normal good

A

Decrease

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Q

What happens to demand of an inferior good if prices increase and the substitution effect is greater than the income effect

A

Decrease

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Q

What happens to demand if the income effect on an inferior good is greater than the substitution effect when prices increase

A

Demand increases

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