Steven consumes only two goods, both of which are normal goods.He is maximizing his utility in consumption of both goods.Now assume the price of one of the goods increases.How should Steven's consumption change?
A.Steven should consume more of the good whose price rose and less of the good whose price did not change.
B.Steven should consume more of both goods.
C.Steven should consume less of the good whose price rose and more of the good whose price did not change.
D.Steven should consume less of both goods.

Question

Quizplus · Accepted Answer

The Answer of Steven consumes only two goods, both of which are normal goods.He is maximizing his utility in consumption of both goods.Now assume the price of one of the goods increases.How should Steven's consumption change?
A.Steven should consume more of the good whose price rose and less of the good whose price did not change.
B.Steven should consume more of both goods.
C.Steven should consume less of the good whose price rose and more of the good whose price did not change.
D.Steven should consume less of both goods.

Steven Consumes Only Two Goods, Both of Which Are Normal