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In General,the Substitution Effect of an Increase in the Price

Question 64

Multiple Choice

In general,the substitution effect of an increase in the price of a normal good:


A) will cause the individual to buy more of that good because they have relatively more income.
B) will cause the individual to buy less of that good because they have relatively less income.
C) will cause the individual to buy more of that good and less of others because it is relatively less expensive.
D) will cause the individual to buy less of that good and more of others because it is relatively more expensive.

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