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When the Price of a Pizza Decreases from $12 to $10

Question 38

Multiple Choice

When the price of a pizza decreases from $12 to $10, it is definitely the case that the


A) income effect means people buy less pizza.
B) substitution effect means people buy more pizza.
C) quantity demanded of pizza will not change.
D) None of the above answers is correct.

Correct Answer:

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