Multiple Choice
For normal goods like cola and pizza,what is a likely result of the income effect when the price of pizza falls
A) The consumer feels richer, so he buys more cola.
B) The consumer feels richer, so he buys less cola.
C) Cola becomes relatively more expensive, so the consumer buys more cola.
D) Cola becomes relatively less expensive, so the consumer buys less cola.
Correct Answer:

Verified
Correct Answer:
Verified
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