Suppose an individual has an income of $100 to spend on two goods, q1 and q2 . If the individual faces prices p1=$2 and p2=$4 for goods 1 and 2, respectively, Bundle A is the utility maximizing bundle. If the individual instead faces prices p1=$1 and p2=$2, Bundle B is the utility maximizing bundle. Which one of the statements below must be true: a.) Good #1 is an inferior good b.) Good #2 is an inferior good c.) Goods #1 and #2 are complements

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
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Suppose an individual has an income of $100 to spend on two goods, q1 and q2 . If the individual faces prices p1=$2 and p2=$4 for goods 1 and 2, respectively, Bundle A is the utility maximizing bundle. If the individual instead faces prices p1=$1 and p2=$2, Bundle B is the utility maximizing bundle. Which one of the statements below must be true:

a.) Good #1 is an inferior good

b.) Good #2 is an inferior good

c.) Goods #1 and #2 are complements

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