Which of the following statements characterise the 'Normal Good'?
(A). The quantity demanded of a commodity increases as its price falls.
(B). The income effect of price change is positive.
(C). The substitution effect of price change is negative.
(D). The income and substitution effects work in the opposite direction.
Choose the correct answer from the options given below:
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For a Normal Good, substitution and income effects work in the same direction, reinforcing each other.
For an Inferior Good, they work in opposite directions.