Multiple Choice
If ramen is a Giffen good and the price of ramen decreases:
A) the substitution effect will cause a decrease in the consumption of ramen.
B) the income effect will cause a decrease in the consumption of ramen.
C) the income effect will reinforce the substitution effect, and the consumption of ramen will decrease.
D) the demand curve for ramen will still be downward-sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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