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If Indifference Curves and Budget Lines Are Used to Analyze

Question 142

Multiple Choice

If indifference curves and budget lines are used to analyze consumer choice, an inferior good will


A) escape detection when income rises.
B) be easily identified because the quantity purchased will fall as income rises.
C) be easily identified because the quantity purchased will rise as income rises.
D) be easily identified because it will change the slope of the budget line.
E) escape detection because this model does not show that relationship.

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