Consider a consumer who only eats brand A cereal. If there is an increase in the consumer's budget, all of which is spent on extra brand A cereal and prices do not change, which of the following will be true?

Question

Quizplus · Accepted Answer

When a consumer spends their entire increased budget on more of the same good without a change in price, it results in a movement up along the same budget line or ray, indicating they are buying more of the good at the same price.

Consider a Consumer Who Only Eats Brand a Cereal