Multiple Choice
Assume that a college student purchases only coffee and almonds.If coffee is an inferior good and almonds are a normal good,what will the income effect associated with an increase in the price of almonds result in
A) a decrease in the consumption of both almonds and coffee
B) a decrease in the consumption of almonds and an increase in the consumption of coffee
C) an increase in the consumption of both almonds and coffee
D) an increase in the consumption of almonds and a decrease in the consumption of coffee
Correct Answer:
Verified
Correct Answer:
Verified
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