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AP® Microeconomics

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Utility-Maximization: Soft Drinks and Computer Apps

APMICR-XVSVNH

Chris is a utility-maximizing consumer who buys computer apps and soft drinks.

If the price of soft drinks decreases, which of the following is most likely?

A

Chris will buy more computer apps as a result of the substitution effect.

B

Chris will buy more computer apps as a result of the income effect.

C

Chris will buy fewer computer apps as a result of the substitution effect.

D

Chris will buy fewer computer apps as a result of the income effect.

E

Chris will not change his purchases of either good.