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Angela Consumes Only Two Goods, X and Y

Question 54

Multiple Choice

Angela consumes only two goods, x and y.Her income doubles and the prices of the two goods remain unchanged.Assuming that she is a utility maximizer and likes both goods,


A) she will consume more of both goods.
B) the ratio of her consumption of x to y remains constant.
C) her utility doubles.
D) if her preferences are convex, she must consume more x.
E) None of the above.

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