If a good is inferior, a rise in its price will cause people to buy more of

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“If a good is inferior, a rise in its price will cause people to buy more of it, thus violating the law of demand.” True or false? Explain.

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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Question Posted: Dec 11, 2012 12:18 AM

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If a good is inferior, a rise in its price will cause people to buy more of

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False The price increase generates both income and substitution effects With an inferior good ...View the full answer

Macroeconomics Principles and Applications

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