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If a Consumer Is Buying Two Goods and a Decrease

Question 66

Multiple Choice

If a consumer is buying two goods and a decrease in the price of one good results in the consumer buying more of both goods:


A) the income effect resulted in increasing the amounts of both goods purchased.
B) the demand curves for the two goods shifted to the right.
C) the substitution effect was extremely strong, but the income effect was zero.
D) none of the above statements are true.

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