A Consumer Consumes Two Normal Goods,pretzels and Mt

question 94

Multiple Choice

A consumer consumes two normal goods,pretzels and Mt.Dew.The price of Mt.Dew rises.The substitution effect,by itself,suggests that the consumer will consume

• A) more pretzels and more Mt.Dews.
• B) fewer pretzels and fewer Mt.Dews.
• C) more pretzels and fewer Mt.Dews.
• D) fewer pretzels and more Mt.Dews.

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Definitions:

Federal Reserve

The central banking system of the United States that aims to provide the nation with a safer, more flexible, and more stable monetary and financial system.

E-money Transactions

Financial transactions carried out electronically, using digital currencies or electronic substitutes for cash.

Electronic Fund Transfer Act

A US federal law designed to protect consumers engaging in electronic transfers, including ATM transactions, direct deposits, and other electronic payments.

Commercial

Related to the buying and selling of goods and services or to business activities in general.