Casey earns $150 a week and consumes only fish and shrimp.The price of fish is $3 a pound and the price of shrimp is $5 a pound.
If Casey's income falls to $120,the rational spending rule would predict Casey would buy
A)more fish and less shrimp.
B)more fish and more shrimp.
C)less fish and more shrimp.
D)less fish and less shrimp.

Question

Quizplus · Accepted Answer

With a decrease in income, Casey will have less money to spend overall, leading to a decrease in the quantity of both goods purchased, assuming the prices of fish and shrimp remain constant.

Casey Earns $150 a Week and Consumes Only Fish and Shrimp.The