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Steak and Pasta Are Normal Goods

Question 327

Multiple Choice

Steak and pasta are normal goods.When the price of pasta falls,the substitution effect by itself causes


A) the consumer to feel richer, so the consumer buys more steak.
B) the consumer to feel richer, so the consumer buys less steak.
C) steak to be relatively more expensive, so the consumer buys less steak.
D) steak to be relatively less expensive, so the consumer buys more steak.

Correct Answer:

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