A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is an inferior good and good X is a normal good. a. Income doubles. b. Income quadruples and all prices double. c. Income and all prices quadruple. d. Income is halved and all prices double.

A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is an inferior good and good X is a normal good. a. Income doubles. b. Income quadruples and all prices double. c. Income and all prices quadruple. d. Income is halved and all prices double.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 19SQ

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