Multiple Choice
Assume that a college student purchases only diet soda and potato chips. The substitution effect associated with a decrease in the price of a potato chips will result in
A) an increase in the consumption of diet soda only.
B) a decrease in the consumption of diet soda only.
C) an increase in the consumption of potato chips and a decrease in the consumption of diet soda.
D) a decrease in the consumption of potato chips and an increase in the consumption of diet soda.
Correct Answer:
Verified
Correct Answer:
Verified
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