Amy Purchases Only Coffee and Croissants

question 127

Multiple Choice

Amy purchases only coffee and croissants.If both coffee and croissants are normal goods, the income effect associated with a decrease in the price of croissants will result in a(n) :

• A)increase in the consumption of croissants and a decrease in the consumption of coffee
• B)decrease in the consumption of croissants and a decrease in the consumption of coffee
• C)increase in the consumption of croissants and an increase in the consumption of coffee
• D)decrease in the consumption of croissants and an increase in the consumption of coffee

---

Definitions:

Parol Evidence

A rule in contract law that prevents the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary the contractual terms of a written contract.

Integrated Contract

A contract that is considered complete and final, where all the terms are included in the document itself, precluding oral or other external agreements.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party being charged, to be legally enforceable.

Promisors

Individuals or entities that make a promise or agreement within a contract to perform a specified act or duty.