Answer to Question #101214 in Microeconomics for Yohannes

Question #101214
What happen to consumers optimal choice of goods if all price and the consumers income double?
1
Expert's answer
2020-01-13T11:28:42-0500

A consumer’s optimal choice of goods, if all prices and the consumer’s income double, does not change. Since income and prices both doubled, the consumer can buy the same amounts of each good; the budget constraint does not move at all.


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