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The Substitution Effect of a Price Change Leads Consumers to ________

Question 115

Multiple Choice

The substitution effect of a price change leads consumers to ________ their demand for goods whose prices have risen.The income effect leads consumers to buy less of all ________ goods whose prices have risen.


A) reduce; normal
B) increase; inferior
C) increase; normal
D) reduce; Giffen
E) reduce; complement

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