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Assume That a College Student Purchases Only Coffee and Almonds

Question 102

Multiple Choice
Assume that a college student purchases only coffee and almonds.If both coffee and almonds are normal goods,what will the income effect associated with a decrease in the price of almonds result in A)a decrease in the consumption of almonds, and an increase in the consumption of coffee B)a decrease in the consumption of both almonds and coffee C)an increase in the consumption of almonds, and a decrease in the consumption of coffee D)an increase in the consumption of both almonds and coffee

Assume that a college student purchases only coffee and almonds.If both coffee and almonds are normal goods,what will the income effect associated with a decrease in the price of almonds result in


A) a decrease in the consumption of almonds, and an increase in the consumption of coffee
B) a decrease in the consumption of both almonds and coffee
C) an increase in the consumption of almonds, and a decrease in the consumption of coffee
D) an increase in the consumption of both almonds and coffee

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