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Beer and Pretzels Are Normal Goods

Question 192

Multiple Choice

Beer and pretzels are normal goods.When the price of beer falls,the income effect causes


A) the consumer to feel richer, so the consumer buys more pretzels.
B) the consumer to feel richer, so the consumer buys less pretzels.
C) pretzels to be relatively more expensive, so the consumer buys more pretzels.
D) pretzels to be relatively less expensive, so the consumer buys less pretzels.

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