Assume That a College Student Purchases Only Ramen Noodles and Textbooks

question 83

Multiple Choice

Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of Ramen noodles, by itself, will result in

• A)a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
• B)a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles.
• C)an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles.
• D)an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.

---

Definitions:

Sheep Wool

The soft, thick, curly hair that grows on sheep, used extensively in textiles for clothing, blankets, and other products.

Blueprint

A detailed technical drawing or plan for designing buildings, machines, or any structure, traditionally rendered in white lines on a blue background.

Amino Acid Histidine

An essential amino acid important in the growth and repair of tissues, and the production of red and white blood cells.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in growth, development, functioning, and reproduction of all known living organisms.