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Suppose the Price of a Carton of Ice Cream Rises

Question 26

Multiple Choice

Suppose the price of a carton of ice cream rises from $4 to $5 and the price of coffee rises from $2 to $2.50. If the CPI rises from 150 to 200, what will people likely buy?


A) more ice cream and more coffee
B) more ice cream and less coffee
C) less ice cream and more coffee
D) less ice cream and less coffee

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