πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      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
      ask-question