Assume that the consumer is correctly applying the rational spending rule for normal goods X and Z.If the consumer's income increases,purchases of both X and Z rise because
A) the marginal utility of X decreases.
B) the price of Z falls.
C) the marginal utility of Z decreases.
D) combinations of X and Z that could not be considered before are now available.
E) the price of X increases.
Correct Answer:
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Q51: If the ratios of prices and the
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