Multiple Choice
Assume that a college student purchases only coffee and Snickers bars.If both coffee and Snickers bars are normal goods,then the income effect associated with a decrease in the price of a Snickers bar will result in
A) a decrease in the consumption of Snickers bars and an increase in the consumption of coffee.
B) a decrease in the consumption of Snickers bars and a decrease in the consumption of coffee.
C) an increase in the consumption of Snickers bars and a decrease in the consumption of coffee.
D) an increase in the consumption of Snickers bars and an increase in the consumption of coffee.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If the price of bread is zero,the
Q82: As more units of an item are
Q271: Figure 21-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 21-6
Q274: Scenario 21-3<br>Diane knows that she will ultimately
Q275: When the indifference curve is tangent to
Q280: Jane is maximizing total utility while consuming
Q281: Figure 21-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 21-2
Q447: The substitution effect of a wage decrease
Q468: At the consumer's optimum<br>A)the budget constraint will
Q568: Giffen goods have positively-sloped demand curves because