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Suppose a Consumer Spends All Income on Goods X and Y

Question 31

Multiple Choice

Suppose a consumer spends all income on goods X and Y. Suppose the price of good Y decreases and the consumer's income increases. 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) The amount of good X that the consumer can purchase decreases and the amount of good Y that the consumer can purchase increases.
D) The amounts of good X and good Y that the consumer can purchase increase.

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