If the price of normal good X rises, the income:
A)and substitution effects will both induce the consumer to buy less of X.
B)and substitution effects will both induce the consumer to buy more of X.
C)effect will induce the consumer to buy more of X and the substitution effect will induce him to buy less.
D)effect will induce the consumer to buy less of X and the substitution will induce him to buy more.
Answer:A
If the price of normal good X rises, the income:
A)and substitution effects will both induce the consumer to buy less of X. B)and substitution effects will both induce the consumer to buy more of X. C)effect will induce the consumer to buy more of X and the substitution effect will induce him to buy less. D)effect will induce the consumer to buy less of X and the substitution will induce him to buy more.