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D Question 3 1.5 pts Consider a consumer with well-behaved and strictly convex preferences in an economy with just two goods, goods X and Y.
D Question 3 1.5 pts Consider a consumer with well-behaved and strictly convex preferences in an economy with just two goods, goods X and Y. The price of good Y falls. Which statement is true? The substitution effect could increase of decrease the quantity demanded of good 2, depending on whether good X is normal or not. The income and substitution effects do not reinforce one another. None of the other answers are correct. The income effect always requires that the consumer decrease the quantity demanded of good X. The substitution effect must decrease the quantity demanded of good X
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