Answer to Question #275787 in Microeconomics for xyz

Question

Suppose you are on a three-day trip to Rome (from Monday to Wednesday) and during your stay you decide to consume only Waffle and Ravioli (measured on the horizontal and vertical axes respectively). You have a given amount of money (some constant) to spend on each of the three days. Suppose that the price of Waffle rises between Monday and Tuesday. If your optimum points of consumption on Monday and Tuesday are respectively called M and T, such that M to the left of T, what does it say about both the commodities? Illustrate your answer using an appropriate diagram

Answer 1

If your optimum points of consumption on Monday and Tuesday are respectively called M and T, such that M to the left of T, then Vaffle is a necessity good, and both the commodities are substitutes.