Suppose a consumer buys only two goods A and B When...

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Suppose a consumer buys only two goods A and B. When commodity A becomes cheaper with increase in consumer's income, it is seen that consumption of A has decreased and that of B has increased. This is because

A. Income effect has acquired the predominance of substitution effect

B. The real income of the consumer has decreased

C. The substitution effect has acquired the predominance of the income effect

D. Afterall good B is not a complete replacement of good A

Answer: Option C

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