If a consumer is choosing from market baskets containing the normal goods X and Y, as the price of good X falls

0 votes
    the consumer may purchase more of good X and good Y, depending upon the consumers preferences, as the lower price of X increases the consumers purchasing power.r.
     the consumer is not able to adjust purchases because the budget constraint remains constant.
     the consumer will always purchase more of good X and the same amount of good Y because the consumers purchasing power has increased..
     the consumer will always purchase more of X and less of Y because of the substitution effect.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
the consumer may purchase more of good X and good Y, depending upon the consumers preferences, as the lower price of X increases the consumers purchasing power.r.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...