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When the Price of a Normal Good Decreases, the _______

Question 24

Multiple Choice

When the price of a normal good decreases, the _______ can be divided between the _______, which keeps the best affordable point on the same indifference curve and the _______, which moves the best affordable point farther away from the origin.


A) price effect; substitution effect; income effect
B) price effect; income effect; substitution effect
C) income effect; substitution effect; price effect
D) substitution effect; price effect; income effect

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