Goods 1 and 2 are perfect complements in Linda's preferences. Suppose that after a change in prices and income, Linda has revised her optimal choice ending up with the same level of utility as before. The price of good 1 has increased proportionally more than the price of good 2 O a. After the change, Linda consumes the same quantity of both goods as before O b. After the change, Linda consumes more of good 1 and less of good 2 OC After the change, Linda consumes more of good 2 and less of good 1 Od. After the change, Linda consumes more of good 1, and she may consume a larger, smaller or equal amount of good 2 than before Oe None of the proposed answers is correct

Goods 1 and 2 are perfect complements in Linda's preferences. Suppose that after a change in prices and income, Linda has revised her optimal choice ending up with the same level of utility as before. The price of good 1 has increased proportionally more than the price of good 2 O a. After the change, Linda consumes the same quantity of both goods as before O b. After the change, Linda consumes more of good 1 and less of good 2 OC After the change, Linda consumes more of good 2 and less of good 1 Od. After the change, Linda consumes more of good 1, and she may consume a larger, smaller or equal amount of good 2 than before Oe None of the proposed answers is correct

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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