Pepsi and Pizza Are Normal Goods

question 73

Multiple Choice

Pepsi and pizza are normal goods.When the price of pizza falls,the substitution effect causes a

• A) shift to a lower indifference curve and the consumer buys less Pepsi.
• B) shift to a higher indifference curve and the consumer buys more Pepsi.
• C) movement along the indifference curve and the consumer buys more Pepsi.
• D) movement along the indifference curve and the consumer buys less Pepsi.

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Definitions:

Groundwater

the water present beneath Earth's surface in soil pore spaces and in the fractures of rock formations.

Lakes

Bodies of freshwater or sometimes saline water occupying large depressions on the Earth's surface, often fed by rivers or streams.

Ice Caps

Large areas covered with ice that are smaller than ice sheets, found in polar and subpolar regions, significantly affecting the regional climate.

Groundwater

Water that fills the cracks and spaces in underground soil and rock layers, supplying wells and springs.