Question: Please help! 4. There are two goods, Ford and Chevy. Both are normal goods. You are told that the two goods are substitutes. There is

Please help!

4. There are two goods, Ford and Chevy. Both are normal goods. You are told that the two goods are substitutes. There is an increase in the price of Fords. A. What is the income effect on the quantity demanded of Chevrolets? increase in demand (Positive) B. What is the substitution effect on the quantity demanded of Chevrolets? Positive C. What must be the overall effect on the quantity demanded of Chevrolets? Positive, Since demand D. Is the income effect or the substitution effect dominant? will increase as a result of the raised ford price

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