6. Bijou, whose pronouns are they/them/theirs, spends their entire income on two goods, X and Y, and has "standard-looki
Posted: Wed Apr 27, 2022 11:49 am
- 6 Bijou Whose Pronouns Are They Them Theirs Spends Their Entire Income On Two Goods X And Y And Has Standard Looki 1 (41.31 KiB) Viewed 37 times
6. Bijou, whose pronouns are they/them/theirs, spends their entire income on two goods, X and Y, and has "standard-looking" indifference curves. When the price of X doubles while their income and the price of Y stay unchanged, they consume less X but more Y. Given this information, which of the following statements cannot possibly be true? a) Y is an inferior good. b) X is an inferior good. c) The substitution effect dominates the income effect for Y. d) The income effect dominates the substitution effect for Y. e) They consume more X and more Y on the substitution effect.