When the price of an inferior good falls, the substitution effect contributes to _ in the quantity demanded, and the income effect _ the substitution effect?

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When the price of an inferior good falls, the substitution effect contributes to _____ in the quantity demanded, and the income effect _____ the substitution effect?

asked May 16, 2018 104k views

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Breno Teixeira · Answer 1 · 2018-05-21T09:55:28+0000

When the price of an inferior good falls, the substitution effect contributes to an increase in the quantity demanded, and the income effect opposes the substitution effect.

When the price of an inferior good falls, the substitution effect contributes to _ in the quantity demanded, and the income effect _ the substitution effect?

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