Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference curves, and chooses C his initial optimal consumption bundle. Now suppose the price of X decreas while Ming's income and the price of Y stay unchanged. At his new optimal consumption bundle, Ming consumes more X and more Y than he consumec at C. Given this information, which of the following statements must be true

Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference curves, and chooses C his initial optimal consumption bundle. Now suppose the price of X decreas while Ming's income and the price of Y stay unchanged. At his new optimal consumption bundle, Ming consumes more X and more Y than he consumec at C. Given this information, which of the following statements must be true

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.9P

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