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Assume You Are Consuming Two Goods,X and Y

Question 127

Multiple Choice

Assume you are consuming two goods,X and Y.Suppose the absolute prices for X and Y remain unchanged,but your money income falls by 50%.What happens to your consumption of good X?


A) it increases
B) it stays the same
C) it increases or decreases,depending on whether it is normal or inferior
D) it decreases
E) it decreases by 50%

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