Suppose that Nicholas has $50 to spend on food and clothing. If Nicholas 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 Nicholas's budget doubles from $50 to $100, it is most likely that he will increase his consumption of both food and clothing, assuming these goods are normal goods and there are no specific preferences or constraints not mentioned in the question.

Suppose That Nicholas Has $50 to Spend on Food and Clothing