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Assume That Tonya Consumes Only Two Products, Pizza and Potato

Question 296

Multiple Choice

Assume that Tonya consumes only two products, pizza and potato chips, out of a given budget. If the price of pizza decreases, then Tonya's consumption of pizza will


A) decrease due to the income effect.
B) decrease due to the substitution effect.
C) increase due to the income effect.
D) increase due to the law of diminishing marginal utility.

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