2463EconomicsMedium
The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to ________ of that good?
Areduce quantity demanded, increase quantity demanded
Bincrease quantity demanded, increases quantity demanded
Cincrease quantity demanded, reduce quantity demanded
Dreduce quantity demanded, reduce quantity demanded
Correct answer
D. reduce quantity demanded, reduce quantity demanded
Explanation
The correct answer is reduce quantity demanded, reduce quantity demanded.