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Charlie buys only milk and cereal. Milk is a normal good, while cereal is an inferior good.
hi need help answering this question with an explanation, I'm a little confused on how this would work out.
Charlie buys only milk and cereal. Milk is a normal good, while cereal is an inferior good. When the price of milk rises, Charlie buys
a.less of both goods.
b.more milk and less cereal.
c.less milk and more cereal.
d.less milk, but the impact on cereal is ambiguous.