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If Consumers' Income Increases by One Dollar and Consumers Consume

Question 2

Multiple Choice

If consumers' income increases by one dollar and consumers consume both food and non-food,________.


A) spending on food consumption will always increase.
B) spending on food consumption will increase but by less than one dollar if both food and non-food are normal goods.
C) spending on food consumption will increase only if non-food is inferior good.
D) spending on food consumption will increase only if non-food is normal good.

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