For an inferior good, a rise in price causes
a. negative income and substitution effects
b. positive income and substitution effects
c. a negative income effect and a positive substitution effect
d. a positive income effect and a negative substitution effect
e. a positive income effect, but no substitution effect
D
Economics
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According to this Application, by using a value-added approach to measure Wal-Mart's sales impact on the economy, we are
A) including GDP as a measure of welfare. B) using a chain-weighted index. C) avoiding double-counting. D) excluding the net foreign sector.
Economics
Identify the cause and the effect in the following examples:
a. Lower infant mortality and an improvement in nutrition b. A surge in cocoa prices and a pest attack on the cocoa crop that year
Economics