Multiple Choice
Suppose a decrease of 7% in the price of lobster increases the consumption of lobster by 18%. Such a price decrease will induce households to spend
A) less of their income on lobster.
B) more of their income on lobster.
C) the same amount on lobster as before.
D) less on products that are complementary with lobster.
Correct Answer:
Verified
Correct Answer:
Verified
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