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If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a
If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then
a) there is no substitution effect from a change in the price of coffee
b) there is no income effect from a change in the price of coffee
c) coffee and cream must be Giffen goods
d) an increase in income will not affect cream purchases
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