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Suppose a Consumer Can Purchase Only Two Goods,soap and Apples

Question 109

Multiple Choice

Suppose a consumer can purchase only two goods,soap and apples.If the price of soap falls and the consumption of apples increases,we can conclude that the increased consumption of apples is due to


A) neither the income effect nor the substitution effect.
B) both the income effect and the substitution effect.
C) the income effect only.
D) the substitution effect only.
E) the deflation effect.

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