1.How would the following change affect consumer choice? Select the best answer. Total utility for one good...
Question:
1.How would the following change affect consumer choice? Select the best answer.
Total utility for one good decreases
a.The budget constraint is shifted in to the left
b.The budget constraint changes slope and less of the good can be purchased
c.The budget constraint changes slope and more of the good can be purchased
d.It is not possible to predict the change on consumer choice
2.Suppose someone's budget is$1,680. The price of Product A is$28per unit, and the price of Product B is$105. The utility-maximizing choice is to spend an equal amount of money on each product. Additionally, both goods are normal.
Calculate how the quantity of both goods will change after a2 timesrisein income. Enter your answers in the boxes below, use a minus sign to show a decrease in amount, and round your answers to the nearest whole number if necessary.