Question

What will be the income effect, in case of an inferior good? a) Partially offsets the substitution effect b) Is equal to the substitution effect c) Reinforces the substitution effect d) More than offsets the substitution effect​

Answer 1

Answer:

In Microeconomics,in the case of inferior goods,the income effect can only partially offset the substitution effect. Hence,the answer in this case would be option a. or Partially offsets the substitution effect.

Explanation:

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