Question
Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO) and new budget line (labeled B1) for two goods,
Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO) and new budget line (labeled B1) for two goods, X and Y, and two different indifference curves (IC1- IC2). IC1 Consider the shift in the budget line from B0 to B1. Which of the following statements is correct? a. Goods X and Y are complements. Ob. Goods X and Y are substitutes. Goods X and Y are neither substitutes nor complements.
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
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