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Cashews and Asparagus Are Normal Goods

Question 557

Multiple Choice

Cashews and asparagus are normal goods. When the price of asparagus falls, the substitution effect by itself causes


A) the consumer to feel richer, so the consumer buys more cashews.
B) the consumer to feel richer, so the consumer buys less cashews.
C) cashews to be relatively more expensive, so the consumer buys less cashews.
D) cashews to be relatively less expensive, so the consumer buys more cashews.

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