(Choose 1 answer)
(17716) When a consumer experiences a price decrease for an inferior good, it is possible that the income effect is
A. (i) less than the substitution effect, and the demand curve will be downward sloping.
B. (ii) greater than the substitution effect, and the demand curve will be upward sloping.
C. (iii) less than the substitution effect, and the demand curve will be upward sloping.
D. both (i) and (ii) are correct.
E32
