# The income effect of a price increase of a normal good is to _____ of that good and the substitution effect is to _____ of that good? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The income effect of a price increase of a normal good is to _____ of that good and the substitution effect is to _____ of that good? Correct Answer: C. reduce quantity demanded, reduce quantity demanded. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The income effect of a price increase of a normal good is to _____ of that good and the substitution effect is to _____ of that good?

Direct Answer & Quick Reference

The correct option is **C. reduce quantity demanded, reduce quantity demanded**.

A. increase quantity demanded, reduce quantity demanded

B. increase quantity demanded, increases quantity demanded

C. reduce quantity demanded, reduce quantity demanded **(Correct Answer)**

D. reduce quantity demanded, increase quantity demanded

✨ Explain with AI

Verified Key: C. reduce quantity demanded, reduce quantity demanded
Solved by 3,683+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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