Assume That a College Student Purchases Only Coffee and Almonds

question 45

Multiple Choice

Assume that a college student purchases only coffee and almonds.If both coffee and almonds are normal goods,what will the income effect associated with a decrease in the price of almonds result in

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

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Definitions:

Ethnographic Research

A qualitative research method that studies people and cultures in their natural environment through observations and interviews.

Observational Approach

A research strategy where behavior is watched and recorded without intervention, often used to gather data on consumer habits.

Behavioral Reactions

Responses or actions taken by individuals or groups in response to environmental, social, or internal stimuli.

Emotional Reactions

The spontaneous and subjective feelings elicited in an individual in response to a stimulus, event, or situation.