Economics · Income and Substitution Effects

With respect to the Income Effect and Substitution Effect (Hicks decomposition), which of the following are true when the price of good X falls? A. For a normal good, both the income effect and the substitution effect increase demand for X. B. For a Giffen good, the (negative) income effect outweighs the substitution effect. C. For an inferior good that is not Giffen, the substitution effect dominates the income effect in absolute value. D. The compensating variation in income that isolates the Hicksian substitution effect keeps real income (utility) constant.