Assume That a College Student Purchases Only Coffee and Snickers

question 276

Multiple Choice

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

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

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