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Assume That a College Student Purchases Only Coffee and Snickers

Question 42

Multiple Choice

Assume that a college student purchases only coffee and Snickers bars.If coffee is an inferior good and Snickers bars are a normal good,then the income effect associated with an increase in the price of a Snickers bar will result in


A) a decrease in the consumption of Snickers bars and a decrease in the consumption of coffee.
B) a decrease in the consumption of Snickers bars and an increase in the consumption of coffee.
C) an increase in the consumption of Snickers bars and an increase in the consumption of coffee.
D) an increase in the consumption of Snickers bars and a decrease in the consumption of coffee.

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