Goods 1 and 2 are perfect complements, and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1.If a consumer has an income of $420 and if the price of good 2 changes from $6 to $7, while the price of good 1 stays at $1, then the income effect of the price change
A)does not change demand for good 1.
B)accounts for the entire change in demand.
C)is exactly twice as strong as the substitution effect.
D)is 7 times as strong as the substitution effect.
E)is 6 times as strong as the substitution effect.

Question

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The Answer of Goods 1 and 2 are perfect complements, and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1.If a consumer has an income of $420 and if the price of good 2 changes from $6 to $7, while the price of good 1 stays at $1, then the income effect of the price change
A)does not change demand for good 1.
B)accounts for the entire change in demand.
C)is exactly twice as strong as the substitution effect.
D)is 7 times as strong as the substitution effect.
E)is 6 times as strong as the substitution effect.

Goods 1 and 2 Are Perfect Complements, and a Consumer