Suppose That for Emily, DVDs and Trips to the Movie

question 399

Multiple Choice

Suppose that for Emily, DVDs and trips to the movie theater are perfect substitutes. Currently, Emily is spending all of her income on trips to the movie theater. If the price of DVDs doubles, the substitution effect will

• A)be two times the income effect.
• B)be half the income effect.
• C)be zero.
• D)always increase the number of trips to the movie theater Emily makes.

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