Microeconomics
Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 7.2, Problem 2ST
To determine

Explain the concept of consumer disequilibrium.

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a) In a two-good world, in which the goods are A and B, what does it mean to be in consumer disequilibrium? How does the Budget Constraint shift and swing?
If price of X increases, how will it affect the consumer equillibrium?
Will consumption of Grenades increase or decrease due to the income effect?
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