Asked by Elle
If a consumer is in equilibrium and all prices and her income increase by 25%, she will consume less of those goods that she considers inferior.
if false, explain why.
Take a shot. What does your economic reasoning tell you? Hint. If all prices and income rise by exactly 25%, how would you expect a person's consumption to change? if any?
it wouldn't change her consumption
Thats what I think too.
if false, explain why.
Take a shot. What does your economic reasoning tell you? Hint. If all prices and income rise by exactly 25%, how would you expect a person's consumption to change? if any?
it wouldn't change her consumption
Thats what I think too.
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