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(1) Lainey can only buy two goods this week with her 580 of weekly income available: Sawdust and leaves. Assume she cannot save or borrow,
(1) Lainey can only buy two goods this week with her 580 of weekly income available: Sawdust and leaves. Assume she cannot save or borrow, and that sawdust is an inferior good. What will definitely happen if hei income increased to $100? Assume Lainey always maximizes her utility, and that Lainey always consumes positive quantities of both goods. (a) Quantity of sawdust demanded will increase (b) Quantity of sawdust demanded will remain the same (c) Quantity of leaves demanded will decrease (d) Quantity of leaves demanded will increase (e) None of the above
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