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A 20 Percent Increase in the Price of Sugar Reduces

Question 10

Multiple Choice

A 20 percent increase in the price of sugar reduces sugar consumption by about 10 percent. Such a price increase causes households to


A) spend less on sugar.
B) spend more on sugar.
C) spend the same amount on sugar as before.
D) consume more goods like coffee and tea, which are sugar complements.

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