A consumer buys good A and B. According to the substitution effect, when the price of good B decreases, the marginal utility per dollar for good ___ increases so the consumer wants to spend more of his/her budget on good __.

Respuesta :

Assume that good X and good Y have the same MU/P ratio of 12 section ( section per dollar. A consumer who wants to keep consumer equilibrium will purchase more of good Y until good X's price drops to $1 from $2.

Who is the consumer?

Consumer is a noun that can be pronounced as one who consumes. a plant or animal that needs complex organic components for food, which it acquires by preying on some other living things or devouring particles of organic matter, especially: a buyer and consumer.

How should consumers behave?

The products that consumers buy must be of high quality and bear quality marks from organizations like Agmark, Cci, Hallmark, etc. Customers ought to always

To know more about Consumer visit:

https://brainly.com/question/15307787

#SPJ4

ACCESS MORE
EDU ACCESS