In general, an increase in the price of a good:
A. will cause the substitution effect to be bigger than the income effect.
B. will cause the income effect to be bigger than the substitution effect.
C. will cause both an income and substitution effect.
D. usually will have no effect.
C. will cause both an income and substitution effect.
Economics
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Differentiate between a closed economy and an open economy
What will be an ideal response?
Economics
In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?
A) The quantity demanded and the quantity supplied increase. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) The demand curve shifts to the right.
Economics