If a Consumer Is Buying Two Goods and a Decrease

question 66

Multiple Choice

If a consumer is buying two goods and a decrease in the price of one good results in the consumer buying more of both goods:

• A) the income effect resulted in increasing the amounts of both goods purchased.
• B) the demand curves for the two goods shifted to the right.
• C) the substitution effect was extremely strong, but the income effect was zero.
• D) none of the above statements are true.

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