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Uta Consumes Two Normal Goods,X and Y,and Is Currently at an Optimum.If

Question 112

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Uta consumes two normal goods,X and Y,and is currently at an optimum.If the price of good X falls,what can we predict with certainty will occur,(aside from Uta's real income rising)

Uta consumes two normal goods,X and Y,and is currently at an optimum.If the price of good X falls,what can we predict with certainty will occur,(aside from Uta's real income rising)


A) She will consume more of both goods.
B) The substitution effect will ensure that she consumes more of good X and less of good Y.
C) She will consume more of good X, but she might consume more, less, or the same of good Y.
D) The substitution effect will negate the positive effect of the rise.

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