(Editor’s note: Reviving price theory with a series on price theory issues. Professor Brian Cutsinger. You can view previous issues and Cutsinger solutions here and here. Please share your proposed solutions in the comments. Professor Cutsinger will be participating in the comments for the next two weeks and will repost his proposed solution shortly thereafter. May the graphs be in your favor and may price theory last forever!)
question:
Consider a consumer who uses his income to purchase only two goods. × and Y. Suppose that the price of these goods became twice this consumer’s monetary income. Rating: No change in quantity. × and Y she buys
Please share your questions and suggested solutions in the comments.
