Multiple Choice
If technology, A, increases permanently then we would expect:
A) consumption to decrease as the substitution effect would be greater than the income effect of the change.
B) consumption to increase as the income effect would be greater than the substitution effect of the change.
C) consumption to increase as the substitution effect would be greater than the income effect of the change.
D) consumption to decrease as the income effect would be greater than the substitution effect of the change.
Correct Answer:

Verified
Correct Answer:
Verified
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