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Pepsi and Pizza Are Normal Goods

Question 73

Multiple Choice

Pepsi and pizza are normal goods.When the price of pizza falls,the substitution effect causes a


A) shift to a lower indifference curve and the consumer buys less Pepsi.
B) shift to a higher indifference curve and the consumer buys more Pepsi.
C) movement along the indifference curve and the consumer buys more Pepsi.
D) movement along the indifference curve and the consumer buys less Pepsi.

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