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:

Atmospheric Pressure

Ambient pressure at sea level equivalent to 14.7 psia, 101.3 kPa, 1 atm, or 1.01 bar.

Psia

Pounds per square inch absolute. Measure of pressure values used in North America that factors in atmospheric pressure of 14.7 psi.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, crucial for weather patterns and breathing.

Sea Level

The average level of the surface of the ocean at any given place, used as a standard in calculating land elevation and water depth.