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      Question

      src="https://www.ixambee.com/questionimage/RBI-Gr-B-DEPR-Paper-I/1721818011-RBIDEPRMT-1-4.JPG" alt="" />
      A increases Correct Answer Incorrect Answer
      B Decreases Correct Answer Incorrect Answer
      C remains constant Correct Answer Incorrect Answer
      D cannot say Correct Answer Incorrect Answer

      Solution

      Here at optimal, we consume both in an ideal world, but if income is so less that we can’t even purchase amount of X at the equilibrium, in this case we are spending all our income to good X. Hence can’t say.

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