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Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the

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Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the

Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the
A) substitution effect on coffee is positive, and the income effect on coffee is positive.
B) substitution effect on coffee is ambiguous, and the income effect on coffee is ambiguous.
C) substitution effect on coffee is positive, and the income effect on coffee is ambiguous.
D) substitution effect on coffee is ambiguous, and the income effect on coffee is positive.

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Microeconomics

Edition: 6^th

Author: Perloff

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And if you call, I will answer
And if you fall, I'll pick you up
And if you court this disaster
I'll point you home

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