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      Question

      Income effect is stronger than substitution effect for?  

      A Inferior Goods Correct Answer Incorrect Answer
      B Giffen Goods Correct Answer Incorrect Answer
      C Normal Goods Correct Answer Incorrect Answer
      D None Correct Answer Incorrect Answer

      Solution

      A Giffen good is a low-income, non-luxury product for which demand increases as the price increases and vice versa.

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