Multiple Choice
When the price of apples is $2 and the price of oranges is $2, Sue buys 10 apples and eight oranges. When the price of apples decreases to $1, apples become more appealing than oranges because the opportunity cost of buying apples decreases while the opportunity cost of buying oranges increases. What does this description describe?
A) the income effect
B) the consumption effect
C) the substitution effect
D) the Heisenberg principle
Correct Answer:
Verified
Correct Answer:
Verified
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