The substitution effect implies that as the price of a substitute good, the demand for the original good (a) increases; decreases (b) decreases; decreases (c) decreases; increases (d) None of the above.

The substitution effect implies that as the price of a substitute good, the demand for the original good (a) increases; decreases (b) decreases; decreases (c) decreases; increases (d) None of the above.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 2QFR

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Question

The substitution effect implies that as the price of a substitute good.
the demand for the original good
(a) increases; decreases
(b) decreases; decreases
(c) decreases; increases
(d) None of the above.

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