Pepsi and Pizza Are Normal Goods

question 567

Multiple Choice

Pepsi and pizza are normal goods. When the price of pizza falls, the substitution effect by itself will cause a

• A)shift to a lower indifference curve so that the consumer buys less Pepsi.
• B)shift to a higher indifference curve so that the consumer buys more Pepsi.
• C)movement along the indifference curve so that the consumer buys more Pepsi.
• D)movement along the indifference curve so that the consumer buys less Pepsi.

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