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Which of the Following Statements Is FALSE Regarding Consumer Choice

Question 410

Multiple Choice

Which of the following statements is FALSE regarding consumer choice?


A) Each change in price has a substitution effect and a real income effect.
B) When price falls, the consumer chooses in favor of the cheaper good.
C) Diminishing marginal utility is one reason for a downward sloping demand curve.
D) Purchasing power has an inverse relationship with the rise in income.

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