For a normal good, does the income effect reinforce the substitution effect or does it partly offset the substitution effect?
What will be an ideal response?
For a normal good the substitution effect and the income effect reinforce each other, and a decrease (increase) in the price of a good will always result in an increase (decrease) in the quantity of the good demanded.
Economics
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Which of the following can be a barrier to an LDC's economic growth and development?
a. Low population growth. b. A low level of human capital. c. Faster capital accumulation. d. More infrastructure.
Economics
Economists argue that restrictions against ticket scalping actually drive up the cost of many tickets
a. True b. False Indicate whether the statement is true or false
Economics