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Suppose That Consumers' Preferences Are Well Behaved in That Properties

Question 137

Multiple Choice

Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied.Furthermore,assume goods X and Y are normal goods and the price of good X decreases.Then the substitution effect will lead consumers to consume:


A) more of good X and more of good Y.
B) less of good X and more of good Y.
C) less of good X and less of good Y.
D) more of good X and less of good Y.

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