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A Consumer's Bundle Includes Good X and Good Y

question 141

Essay

A consumer's bundle includes good X and good Y. Determine whether the following statements are true, false, or uncertain.
a. If good X is a normal good and its price rises, the consumer will buy more of it.
b. If good X is an inferior good and its price rises, the consumer will buy less of it.
c. If good X is a Giffen good and its price falls, the consumer will buy less of it.


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