Question: Which statement is true for a normal good? A.As income increases, consumption decreases. B.The income effect reinforces the substitution effect. C.As income increases, consumption remains

  • Which statement is true for a normal good?
  • A.As income increases, consumption decreases.
  • B.The income effect reinforces the substitution effect.
  • C.As income increases, consumption remains constant.
  • D.As price falls, we do not know whether consumption increases or decreases.
  • E.The income effect dominates the substitution effect.

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