Bundle A is the utility maximizing bundle for an individual with an income of y facing a price of p1 for good #1 and a price of p2 for good #2. Which statement could explain the individual's utility maximizing bundle moving to point B: A. The price of good #2 increases and the goods are complements B. The price of good #2 decreases and the goods are substitutes C. The price of good #1 decreases and the goods are complements D. The price of good #1 increases and the goods are substitutes
Bundle A is the utility maximizing bundle for an individual with an income of y facing a price of p1 for good #1 and a price of p2 for good #2. Which statement could explain the individual's utility maximizing bundle moving to point B: A. The price of good #2 increases and the goods are complements B. The price of good #2 decreases and the goods are substitutes C. The price of good #1 decreases and the goods are complements D. The price of good #1 increases and the goods are substitutes
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
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Bundle A is the utility maximizing bundle for an individual with an income of y facing a
A. The price of good #2 increases and the goods are complements
B. The price of good #2 decreases and the goods are substitutes
C. The price of good #1 decreases and the goods are complements
D. The price of good #1 increases and the goods are substitutes
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