If there are two goods and if income doubles and the price of good 1 doubles while the price of good 2 stays constant, a consumer's demand for good
A) 1 will increase only if it is a Giffen good for her.
B) 2 will decrease only if it is a Giffen good for her.
C) 2 will increase only if it is an inferior good for her.
D) 2 will decrease only if it is an inferior good for her.
E) None of the above.
Correct Answer:
Verified
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