4) Xiaomei views soy milk and youtiao as perfect complements for breakfast, and the corners of her indifference curves follow the 45-degree line. Initially, the price of soy milk is 4 RMB, the price of youtiao is 2 RMB, and Xiaomei's breakfast budget is 60 RMB per month. How does her optimal consumption bundle change if the price of soy milk decreases to 3 RMB? A) She increases her consumption by 2 soy milk and 2 youtiao. B) She increases her consumption by 2 soy milk and 1 youtiao. C) She does not change her consumption because these goods are perfect complements. D) She buys fewer youtiao and more soy milk.10) Other things being equal, the lower the absolute value of own-price elasticity of demand: A) the greater the responsiveness in quantity demanded to a price change. B) the lower the corresponding increase in firm revenue. C) the more likely the profitability of a price increase. D) the less likely that costs are increasing. Clothing (units per month) E Food (units per month 11) The effect of a decrease in the price of food, as depicted in the figure, leads us to believe that: A) food in an inferior good and clothing a normal good. B) both food and clothing are inferior goods. C) food in a normal good and clothing an inferior good. D) both food and clothing are normal goods.11) Assume that cigarettes are a Giffen good. If the price of cigarettes fall, then the substitution effect results in the person buying of the good and the income effect results in the person buying of the good. Overall, the person buys _____ cigarettes. A) more; less ; less B) less: less; more C) more; more; less D) less; more; more