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Assume X and Y Are the Only Two Goods a Person

Question 54

Multiple Choice

Assume X and Y are the only two goods a person consumes.If after a rise in PXP _ { X } the quantity demanded of Y increases,one could say


A) the income effect dominates the substitution effect for Y.
B) the substitution effect dominates the income effect for Y.
C) it is impossible to determine whether the substitution or income effect dominates for Y.
D) None of the above.

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