Multiple Choice
Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will
A) cause the consumer to buy more of good Y and less of good X.
B) cause the consumer to buy more of good X and less of good Y.
C) not affect the amount of goods X and Y that the consumer buys.
D) result in an upward-sloping demand for good Y because of the substitution effect.
Correct Answer:

Verified
Correct Answer:
Verified
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