Answer
C) less milk and more cereal.
Work Step by Step
When the price of milk rises, Charlie 's actual income is being reduced. Because of this, Charlie reduces his milk intake and increases his cereal intake.
Principles of Microeconomics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516590X
ISBN 13:
978-1-28516-590-5
Chapter 21 - Part VII - The Theory of Consumer Choice - Quick Check Multiple Choice - Page 458: 2
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