Multiple Choice
Amy purchases only coffee and croissants.If coffee is an inferior good and croissants are normal goods, the income effect associated with an increase in the price of croissants will result in a(n) :
A) increase in the consumption of croissants and an increase in the consumption of coffee
B) increase in the consumption of croissants and a decrease in the consumption of coffee
C) decrease in the consumption of croissants and a decrease in the consumption of coffee
D) decrease in the consumption of croissants and an increase in the consumption of coffee
Correct Answer:

Verified
Correct Answer:
Verified
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