For this exercise, assume there are only two goods. The substitution effect of an increase in the price of one good always the amount of that good in the individual's new consumption choice (bundle) and I:l the amount of the other goo! The associated income effect of an increase in the price of one good l : ", i decreases the quantity of the other good, but the quantities of the two goods in th effect. increases leaves unchanged e quantity of that good and nnot simultaneously as a result of the income For this exercise, assume there are only two goods. The substitution effect of an increase in the price of one good always |increases the amount of that good in the individual's new consumption choice (bundle) and ':l the amount of the other good. The associated incor price of one good V| the quantity of that good and the quantity of the otl the two goods in the new consumption choice cannot simultaneously increases as a result of the income effect. decreases leaves unchanged The substitution effect of an increase in the price of one good always the amount of that good in the individual's new consumption choice (bundle) and | the amount of the other good. The associated income effect of an increase in the price of one gocd ':\\ the quantity of that good and the quantity of the other good, but the quantities of the two goods in tt 1ultaneously effect. as a result of the income may increase or decrease will always increase will always decrease For this exercise, assume there are only two goods. The substitution effect of an increase in the price of one good always |increases choice (bundle) and |:| the amount of the other good. the amount of that good in the individual's new consumption The associated income effect of an increase in the price of one good :l the quantity of that gOOD the quantity of the other good, but the quantities of the two goods in the new consumption choice cannot simultaneous I effect. will always increase may increase or decrease will always decrease For this exercise, assume there are only two goods. The substitution effect of an increase in the price of one good always the amount of that good in the individual's new consumption choice (bundle) and I:l the amount of the other good. The associated income effect of an increase in the price of one good |:| the guantity of that good and the quantity of the other good, but the quantities of the two goods in the new consumption choice cannot simultaneously as aresult of the income effect. decrease increase