Title: If a consumer is initially at an optimum, and then the price of Y decreases, then Post by: jmoney5 on Mar 3, 2019 Question 1. The real-income effect of a price change is most significant when• the substitution effect is insignificant. • the marginal utility per dollar spent on the last unit is high. • the substitution effect is significant too. • the good under consideration constitutes a major portion of the consumer's budget. Question 2. If a consumer is initially at an optimum, and then the price of Y decreases, then• MUX/MUY < PY/PX. • MUX/PX > MUY/PY. • MUX/PX < MUY/PY. • MUX/PX = MUY/PY. Title: If a consumer is initially at an optimum, and then the price of Y decreases, then Post by: Bakari on Mar 3, 2019 Content hidden
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