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A Consumer's Bundle Includes Good X and Good Y

question 87

Multiple Choice

A consumer's bundle includes good X and good Y. If good X is an inferior good, the size of the income effect is smaller than the substitution effect, goods X and Y are substitutes, and the price of good X rises, the consumer will buy ____ of good X and ____ of good Y.


Definitions:

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Complete Certainty

A state of being without any doubt or possibility of error, often considered unachievable in many areas of knowledge.

Knowledge Requires

The necessity for information, understanding, or skill to achieve a particular task or to understand a subject.

Skeptical

Characterized by an attitude of questioning or doubt, especially regarding claims accepted by others as true.

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