This preview shows page 1. Sign up to view the full content.
Unformatted text preview: B budget line shifts right because prices go up less then ur income goes up c)nothing will change because budget line wont change?? Answers***\\ A(when both goods are normal, the consumption of both goosds will decline. Thewn one goods infereior, consumption of the inferior good will increase and the consumption of the normal good will decrease B(when both goods are normal, consumption of both goods will increase. When one of the goods ins inferior consumption of the normal good will increase and consumption of the inferior good will drcrease C(nothing will hpapnnen to the consumption of either good....
View Full Document
- Spring '11