Assume That Consumers in Both Alberta and Quebec Have Identical

question 61

Multiple Choice

Assume that consumers in both Alberta and Quebec have identical incomes and preferences,but the price of ice cream is higher in Quebec.The rational spending rule would predict that consumers in

• A) Alberta will eat more ice cream.
• B) Quebec will eat more ice cream.
• C) both Alberta and Quebec will eat less ice cream.
• D) both Alberta and Quebec will eat more ice cream.
• E) Alberta will eat less ice cream.

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