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    Exam 21: The Theory of Consumer Choice
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    If the Consumer's Income and All Prices Simultaneously Decrease by One-Half
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If the Consumer's Income and All Prices Simultaneously Decrease by One-Half

Question 368

Question 368

Multiple Choice

If the consumer's income and all prices simultaneously decrease by one-half, then the optimum consumption will


A) shift outward relative to the original optimum.
B) move leftward along the original budget constraint.
C) shift inward relative to the original optimum.
D) not change.

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