Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal good) declines. She will most likely purchase more hamburgers; this is (a) a reflection of the income effect ; (b) a reflection the substitution effect; (c) a reflection of the income and substitution effects ; (d) None of above

Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal good) declines. She will most likely purchase more hamburgers; this is (a) a reflection of the income effect ; (b) a reflection the substitution effect; (c) a reflection of the income and substitution effects ; (d) None of above 
by

1 Answer

Answer :

(b) a reflection the substitution effect;
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