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Assume Sally Is Initially in Equilibrium and That X and Y

Question 267

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Assume Sally is initially in equilibrium and that X and Y are normal goods for her. Then the price of X rises. For Sally to move to a new equilibrium point, her consumption of


A) X must remain constant, but her consumption of Y must increase.
B) X must decrease.
C) X must increase.
D) both X and Y must increase.

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