In case of inferior goods, the income effect is negative, although the substitution effect is positive
In inferior goods, the income and substitution effects are negative
In inferior goods, the income and substitution effects are positive
In case of inferior goods, the income effect is positive although the substitution effect is negative
A
In case of inferior goods, the income effect is negative, although the substitution effect is positive
B
In case of inferior goods, the income effect is positive although the substitution effect is negative
C
In inferior goods, the income and substitution effects are positive
D
In inferior goods, the income and substitution effects are negative
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Solution
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In case of inferior goods, the income effect is negative, although the substitution effect is positive- this statement is true as the income of the consumer rises, the demand for inferior good falls.
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