Which of the following is not true?  

1
Total effect of price change on consumption of a good is a combination of income effect and substitution effect 
2
For inferior goods, income effect is always larger than substitution effect, in absolute terms.  
3
For corner solution \(\rm \operatorname{MRS}_{x y} \neq \frac{\mathrm{P}_x}{\mathrm{P}_y}\)
4
For a normal good both the income and substitution effect hold 

Sponsored

hivanix.in

Visit

This quiz is brought to you by hivanix.in

🌐 Web App Development

Quick Navigation