Assume You Are Consuming Two Goods,X and Y

question 56

Multiple Choice

Assume you are consuming two goods,X and Y.X and Y are both normal goods but they are not close complements.The price of good X increases but the price of Y remains unchanged.However,you are given enough additional income to ensure that your utility remains unchanged.What happens to your consumption of good X?

• A)it increases
• B)it stays the same
• C)it increases or decreases
• D)it decreases
• E)it increases over the long run

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Definitions:

Exotic Species

are species that are introduced into a new habitat where they are not naturally found, often causing ecological disruption.

Habitat Destruction

The process by which natural habitat is rendered unable to support the species present, leading to reduced biodiversity.

Commercial Harvesting

The large-scale collection of resources from nature, such as fish or timber, for commercial purposes.

Habitat Fragmentation

The division of habitats that formerly occupied large, unbroken areas into smaller pieces by roads, fields, cities, and other human land-transforming activities.