Multiple Choice
Assume that goods X and Y are not Giffen goods. If the price of good X falls, a consumer will definitely
A) consume more of good X because her budget constraint has rotated outward.
B) consume more of good X because her budget constraint has shifted outward.
C) consume more of good Y because her budget constraint has rotated outward.
D) consume more of good Y because her budget constraint has shifted outward.
Correct Answer:
Verified
Correct Answer:
Verified
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