Question
Consider the standard consumer choice problem with fixed income.If the price of a normal good decreases, ceteris paribus, then___________________________. Group of answer choices A.the income
Consider the standard consumer choice problem with fixed income.If the price of a normal good decreases, ceteris paribus, then___________________________.
Group of answer choices
A.the income effect will increase consumption of the good and the substitution effect will decrease consumption
B.the income effect and the substitution effect will both increase consumption of the good
C.the income effect will decrease consumption of the good and the substitution effect will increase consumption
D.the income effect and the substitution effect will both decrease consumption of the good
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