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In Order to Isolate the Substitution Effect of a Price

Question 5

Multiple Choice

In order to isolate the substitution effect of a price increase,a consumer


A) must be given a lower price on the other good so that he can achieve his original indifference curve.
B) must be given enough of the other good so that his consumption of that good is not influenced.
C) must be given enough additional income to allow him to achieve his original indifference curve.
D) must be given enough additional income to allow him to purchase the original quantity of the good.

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