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Which of the Following Correctly Describes an Income-Consumption Curve

Question 33

Multiple Choice

Which of the following correctly describes an income-consumption curve?


A) It identifies consumer responses to decreases in prices which increase his or her real income.
B) It identifies the rate at which a consumer is able to substitute one good for another as income changes.
C) It identifies how a consumer's consumption pattern changes as real income changes while prices are constant.
D) It identifies the income effect of price changes.

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