The Only Goods You Consume Are Pizza and Soda

question 263

Multiple Choice

The only goods you consume are pizza and soda. Both are normal goods. For you, pizza and soda are substitutes. Which of the following leads you to buy more of both goods?

• A) The price of a pizza falls.
• B) The price of a soda falls.
• C) Your income increases.
• D) Both answers A and B are correct.

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