When price of a pizza decreases from $12 to 10, it is definitely the case that the: A. Income effect means people buy less pizza. B. Substitution effect means people buy more pizza. C. Quantity demanded of pizza will not change.
When price of a pizza decreases from $12 to 10, it is definitely the case that the: A. Income effect means people buy less pizza. B. Substitution effect means people buy more pizza. C. Quantity demanded of pizza will not change.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 13SQ
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When price of a pizza decreases from $12 to 10, it is definitely the case that the:
A. Income effect means people buy less pizza.
B. Substitution effect means people buy more pizza.
C. Quantity
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