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A consumer only consumes coffee and juice. The price of coffee goes down and con

ID: 1242746 • Letter: A

Question

A consumer only consumes coffee and juice. The price of coffee goes down and consumption of coffee decreases. Is coffee an ordinary good? The price of coffee goes up and consumption of coffee decreases. Is coffee an ordinary good? The price of coffee goes down and consumption of coffee increases. Is coffee an ordinary good? The price of coffee goes up and consumption of coffee increases. Is coffee an ordinary good? The price of coffee goes up and consumption of coffee remains constant. Is coffee an ordinary good?

Explanation / Answer

coffee is not an ordinary good because for an ordinary good if price of good falls consumption should increase in second case yes it is an ordinary good 3rd case yes 4th case no 5th case no

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