Suppose a consumer can choose to consume either apples or oranges.Which of the following results when the price of each fruit increases by 15 percent?
A) The consumer substitutes apples for oranges.
B) The income effect of this price change is positive.
C) The substitution effect of this price change is zero.
D) The consumer demands more of both the goods.
E) The consumer substitutes oranges for apples.
Correct Answer:
Verified
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