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The Law of Demand Applies to Food Because When the Price

Question 145

Multiple Choice

The law of demand applies to food because when the price of food rises, there is


A) a substitution effect and a complement effect.
B) an income effect but no substitution effect.
C) a substitution effect that offsets the income effect.
D) a substitution effect but no income effect.
E) both a substitution effect and an income effect.

Correct Answer:

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