Multiple Choice
The table below shows the total utility associated with various units of goods X and Y.Table 7.5
-The income and substitution effects of a price change occur because:
A) consumer incomes are not constant.
B) consumer substitution rates are not constant.
C) income and substitution effects never occur simultaneously.
D) of diminishing marginal utility and the equimarginal principle.
E) of increasing marginal utility and the equimarginal principle.
Correct Answer:

Verified
Correct Answer:
Verified
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