Which of the following might explain how a price decrease might cause a decrease in quantity demanded and an upward-sloping demand curve?
A.
The good is inferior and the income effect is stronger than the substitution effect.
B.
The good is normal and the income effect is stronger than the substitution effect.
C.
The good is normal and the income effect is weaker than the substitution effect.
D.
The good is inferior and a luxury.
E.
The good is highly subsidized, creating a large increase in marginal utility per dollar.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：31
Answer:
A
Knowledge points:
1.6 Marginal Analysis andConsumer Choice
2.1 Demand
2.5 Other Elasticities
Solution:
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