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Suppose that a consumer initially has $50 in income to spend on x and y where the price of good x and y are both
Suppose that a consumer initially has $50 in income to spend on x and y where the price of good x and y are both $1. Now suppose that the price of good x increases to $1.50, the price of good y decreases to $0.50, while income remains unchanged at $50. Which of the following statements is TRUE? Question 5 options: Even if we know that the consumer buys initially buys positive amounts of both x and y, there is insufficient information to determine whether the consumer is better off or worse off as a result of these changes. As long as the consumer buys initially buys positive amounts of both x and y, this change will make her worse off. As long as the consumer buys initially buys positive amounts of both x and y, this change will make her better off
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