Multiple Choice
Suppose that for Edwin,DVDs and trips to the movie theater are perfect substitutes.Currently,Edwin is spending all of his income on trips to the movie theater.If the price of DVDs doubles,the substitution effect will
A) be two times the income effect.
B) be half the income effect.
C) be zero.
D) always increase the number of trips to the movie theater Edwin consumes.
Correct Answer:
Verified
Correct Answer:
Verified
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