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