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When the Price of One Good Decreases,the Associated Substitution Effect

Question 71

Multiple Choice

When the price of one good decreases,the associated substitution effect is represented by a:


A) move from one indifference to a higher indifference curve since real income is now higher.
B) move from one indifference to a lower indifference curve since real income is now lower.
C) move along a given indifference curve holding real income constant.
D) move along a given indifference curve since real income increases.

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