Answer to Question #154190 in Microeconomics for kevin

Question

Assume that a college student purchases only Red Bull and Mars bars the substitution effect associated with a decrease in the price of a mars will result in:

A An increase in the consumption of Mars and an increase in the consumption of Red Bull.

B An increase in the consumption of Mars and a decrease in the consumption of Red Bull.

C Only a decrease in the consumption of Red Bull.

D Only an increase in the consumption of Mars

Answer 1

B) An increase in the consumption of Mars and a decrease in the consumption of Red Bull.