Suppose That a Consumer's Preferences Are Well Behaved in That

question 173

Multiple Choice

Suppose that a consumer's preferences are well behaved in that properties 4-1 to 4-4 are satisfied and the initial equilibrium consumption bundle consists of 100 units of X and 50 units of Y.If P_X decreases such that the new equilibrium consumption bundle is 150 units of X and 75 units of Y,then goods X and Y are:

• A) complements.
• B) substitutes.
• C) inferior goods.
• D) unrelated.

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Definitions:

Homesteading

The practice of self-sufficiency through sustainable agriculture and home preservation of foodstuffs.

Congruence

The state or condition of being in agreement or harmony, often used in mathematics to describe figures that are identical in shape and size, and in psychology, it refers to the alignment between an individual's self-concept and reality.

Real Self

An individual's authentic self-concept free of societal influences and expectations, reflecting true personal interests, values, and desires.

Ideal Self

An individual's conception of themselves in their highest possible state of being or achievement, often contrasted with their real self.