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Amy Purchases Only Coffee and Croissants

Question 127

Multiple Choice

Amy purchases only coffee and croissants.If both coffee and croissants are normal goods, the income effect associated with a decrease in the price of croissants will result in a(n) :


A) increase in the consumption of croissants and a decrease in the consumption of coffee
B) decrease in the consumption of croissants and a decrease in the consumption of coffee
C) increase in the consumption of croissants and an increase in the consumption of coffee
D) decrease in the consumption of croissants and an increase in the consumption of coffee

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