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Energy Drinks and Granola Bars Are Normal Goods

Question 523

Multiple Choice

Energy drinks and granola bars are normal goods. When the price of energy drinks decreases, the income effect causes a


A) shift to a lower indifference curve, and the consumer buys fewer granola bars.
B) shift to a higher indifference curve, and the consumer buys more granola bars.
C) movement along the indifference curve, and the consumer buys fewer granola bars.
D) movement along the indifference curve, and the consumer buys more granola bars.

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