When a consumer's consumption of one good is reduced, consumption of the other good must be reduced to keep the consumer equally happy due to opportunity costs.

Question

Quizplus · Accepted Answer

This statement assumes a fixed relationship between the consumption of two goods, ignoring the concept of substitution and the possibility that the consumer can derive equal or greater satisfaction by reallocating consumption towards another good, which does not necessarily involve reducing consumption of the other good to maintain the same level of happiness.

When a Consumer's Consumption of One Good Is Reduced, Consumption