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Suppose a consumer can purchase only two goods, soap and apples. If the price of soap falls and the ...

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Suppose a consumer can purchase only two goods, soap and apples. If the price of soap falls and the ...

Suppose a consumer can purchase only two goods, soap and apples. If the price of soap falls and the consumption of apples increases, we can conclude that the increased consumption of apples is due to

▸ the income effect only.

▸ both the income effect and the substitution effect.

▸ neither the income effect nor the substitution effect.

▸ the substitution effect only.

▸ the deflation effect.

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Microeconomics

Edition: 17^th

Author: Ragan

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