Dave Consumes Two Normal Goods, X and Y, and Is

Multiple Choice

Dave consumes two normal goods, X and Y, and is currently at an optimum. If the price of good X falls, we can predict with certainty that

A) Dave will consume more of both goods because his real income has risen.
B) the substitution effect will be positive for good X and negative for good Y.
C) Dave may consume more or less of good X, but he will consume less of good Y.
D) the substitution effect will offset the income effect for good X.