Multiple Choice
What is the effect of a fall in the price of a normal good on the consumer's choice?
A) She will buy more of the good but reach a lower indifference curve.
B) She will buy less of the good but reach a higher indifference curve.
C) She will buy more of the good and reach a higher indifference curve.
D) She will buy the same quantity of the good and stay on the same indifference curve.
E) She will buy more of the good and stay on the same indifference curve.
Correct Answer:
Verified
Correct Answer:
Verified
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