Multiple Choice
Consider an indifference curve based around video games and pizza. If the price of pizza falls, what would have to be true for the consumer to buy less pizza compared with when the price of pizza was higher?
A) Pizza and video games would be perfect substitutes.
B) The income effect would be greater than the substitution effect.
C) Consumption would lie on the same indifference curve.
D) The consumer would be buying as a suboptimal consumption bundle.
Correct Answer:
Verified
Correct Answer:
Verified
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