Author Question: Sue consumes only sandwiches and soda and is at her best affordable point. The price of a sandwich ... (Read 107 times)

a0266361136 · **on:** Jun 29, 2018

Sue consumes only sandwiches and soda and is at her best affordable point. The price of a sandwich falls. The substitution effect is that Sue substitutes ________ for ________. The income effect is that Sue ________.

A) sandwiches; soda; buys less of both goods
B) soda; sandwiches; buys more soda and fewer sandwiches
C) sandwiches; soda; buys more of both goods
D) soda; sandwiches; buys less soda and more sandwiches

Question 2

Goods or services that can be produced only by using unique or rare productive resources tend to have a low elasticity of supply.

Indicate whether the statement is true or false