ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    тЪб Month End Offer - Flat 52% Off On All Courses! Enroll Now тЪб
    00:00:00 AM Left

    Question

    The substitution effect for a commodity is

    A Is always positive Correct Answer Incorrect Answer
    B Is always negative Correct Answer Incorrect Answer
    C Depends upon the nature of the commodity Correct Answer Incorrect Answer
    D Depends upon price effect Correct Answer Incorrect Answer
    E Sometimes negative and sometimes positive Correct Answer Incorrect Answer

    Solution

    The substitution effect for a commodity is always negative as it is the effect due only to the relative price change, controlling for the change in real income.

    Practice Next
    More Research Questions
    ask-question