Here at optimal, we consume both in an ideal world, but if income is so less that we cant even purchase amount of X at the equilibrium, in this case we are spending all our income to good X. Hence cant say.

Answer - 387022

Question

A increases

B Decreases

C remains constant

D cannot say

Practice Next

More Research Questions

When two regression coefficients bear same algebraic signs, then correlation coefficient is:
Consider the game:   What is the dominant strategy of the game?
The problem of 'Adverse Selection' in financial markets, due to asymmetric information, occurs primarily:
A researcher has to consult a recently published book. The probability of it being available is 0.5 for library A and 0.7 for library B. Assuming the two e...
Suppose nominal GDP equals 1,000 units and money supply equals 250 units. Based on the quantity theory of money, the velocity of money equals.
Refer to the below given table   Calculate the GDPmp
Consider an economy described by the following equations:  C = 100 + 0.6 &lowast; (Y − T) (consumption function)  I = 200 − 1000 &l...
The 'Vertical Equity' principle of taxation implies that:
Guess an even integer between 1 and 100 that is closest to 1/2 of the mean of the guesses, what will be the equilibrium in that case?
The long-run Phillips Curve is ____________ Which indicates

Hey! Ask a query

Detailed Solution

More Research Questions

Hey! Ask a query

Please Register/Login