Multiple Choice
The French Bakery ran a special which decreased the price of its croissants from $1.50 to $1.00.Although her money income had not changed, Toni decided to buy 2 croissants instead of her usual 1 bagel and 1 croissant.Toni's actions are explained by which of the following?
A) income effect only or substitution effect only but not both effects
B) income and substitution effects
C) price effect
D) consumption effect
Correct Answer:
Verified
Correct Answer:
Verified
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