There are two goods,X and Y,and the absolute price of good Y falls.It follows that
A) a person can buy more of good Y.
B) a person cannot buy more of good Y.
C) the slope of the budget constraint changes.
D) the indifference curve between X and Y changes.
E) a and c

Question

Quizplus · Accepted Answer

When the price of good Y falls, a person can buy more of good Y with the same amount of money, and the slope of the budget constraint changes because the relative price of the goods has changed.

There Are Two Goods,X and Y,and the Absolute Price of Good