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Suppose Your Income Doubled And, at the Same Time, the Prices

Question 22

Multiple Choice

Suppose your income doubled and, at the same time, the prices of all goods doubled. Suppose you continue to purchase exactly the same bundle as before. What would the law of demand suggest about this behaviour?


A) Reasonable, because the relative price did not change.
B) Uncertain, because we don't know if the goods you purchase are normal or not.
C) Once you have a chance to adjust, you will purchase the low cost goods.
D) Not possible, because when the price goes up the quantity demanded always falls.

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