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Beer and Pretzels Are Normal Goods

Question 98

Multiple Choice

Beer and pretzels are normal goods.When the price of beer falls,the income effect causes a


A) shift to a lower indifference curve and the consumer buys less pretzels.
B) shift to a higher indifference curve and the consumer buys more pretzels.
C) movement along the indifference curve and the consumer buys less pretzels.
D) movement along the indifference curve and the consumer buys more pretzels.

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