Solved

Suppose a Consumer Spends All Income on Goods X and Y

Question 16

Multiple Choice

Suppose a consumer spends all income on goods X and Y. Suppose the price of good X decreases and the consumer's income decreases. Which of the following must be true?


A) The amount of good Y that the consumer can purchase decreases.
B) The amount of good X that the consumer can purchase decreases.
C) Both A and B.
D) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions