The Only Goods You Consume Are Pizza and Soda

question 263

Multiple Choice

The only goods you consume are pizza and soda. Both are normal goods. For you, pizza and soda are substitutes. Which of the following leads you to buy more of both goods?

• A) The price of a pizza falls.
• B) The price of a soda falls.
• C) Your income increases.
• D) Both answers A and B are correct.

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Definitions:

Defend

To protect from harm or attack, or to support a position or argument against criticism or objection.

Metaphor

A figure of speech that describes an object or action in a way that isn’t literally true, but helps explain an idea or make a comparison.

Love

An intense feeling of deep affection or emotional connection towards someone or something.

Rose

A type of flowering shrub of the genus Rosa, in the family Rosaceae, or the flower it bears.