1) Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the price of X falls. For Gloria to move to a new equilibrium point her consumption of A) X must decrease. B) X must remain constant, but her consumption of Y must decrease. C) X must increase. D) both X and Y must decrease.
1) Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the price of X falls. For Gloria to move to a new equilibrium point her consumption of A) X must decrease. B) X must remain constant, but her consumption of Y must decrease. C) X must increase. D) both X and Y must decrease.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 15SQ
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11) Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the
A) X must decrease.
B) X must remain constant, but her consumption of Y must decrease.
C) X must increase.
D) both X and Y must decrease.
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