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by | Jun 24, 2023 | Posted Assignments

PLEASE

If the price of lattes, a normal good you enjoy, fall significantly

A.the real income effect which causes you to increase your latte consumption outweighs the substitution effect which causes you to reduce your latte consumption, resultiing in B.more lattes purchased.

C.both the income and real-income effect lead you to buy more lattes

the substitution effect which causes you to increase your latte consumption outweighs the real income effect which causes you to reduce your latte consumption, resulting in more lattes purchased.

D.the real income and substitution effects offset each other but the price effect leads you to buy more lattes

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