Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 21 - Part VII - The Theory of Consumer Choice - Questions for Review - Page 458: 7

Answer

An increase in the price of cheese might cause a consumer to purchase more cheese.

Work Step by Step

An increase in cheese purchasing (after the price increases) would happen if the cheese is a Giffen good. If cheese is a Giffen good, then the increased consumption of cheese happens because cheese is an inferior good.
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