Suppose that Joe has $50 to spend on food and clothing.If Joe now has $100,then it is most likely that he will
A)increase both food and clothing consumption.
B)increase food consumption but decrease clothing consumption.
C)decrease food consumption but increase clothing consumption.
D)decrease both food and clothing consumption.
E)not change food or clothing consumption.

Question

Quizplus · Accepted Answer

When Joe's budget increases from $50 to $100, he has more disposable income, which typically leads to an increase in the consumption of both goods, assuming they are normal goods.

Suppose That Joe Has $50 to Spend on Food and Clothing.If