There are two goods, X and Y, and the absolute price of good Y falls. It follows that
A)a person can now buy less 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 goods X and Y changes.

Question

Quizplus · Accepted Answer

When the price of good Y falls, the budget constraint's slope changes because the relative price of good Y compared to good X has changed, allowing a person to buy more of good Y for the same amount of money.

There Are Two Goods, X and Y, and the Absolute