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If a Consumer Purchases Only Two Goods (X and Y)and

Question 4

Multiple Choice

If a consumer purchases only two goods (x and y) and the demand for x is elastic,then a rise in the price of x:


A) will cause total spending on good y to rise.
B) will cause total spending on good y to fall.
C) will cause total spending on good y to remain unchanged.
D) will have an indeterminate effect on total spending on good y.

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