If pasta is an inferior good and if the price of pasta


If pasta is an inferior good and if the price of pasta increases, the income effect _____________ the quantity demanded, and the substitution effect ___________ the quantity demanded.

a) reduces; decreases

b) increases; increases

c) reduces; increases

d) increases; decreases

e) does not affect; does not affect

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Business Economics: If pasta is an inferior good and if the price of pasta
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