Question: 6. Tom consumes two goods and his utility function is U $1,592 = $3334. The price of good 2 1 2 does not change and

6. Tom consumes two goods and his utility function is U $1,592 = $3334. The price of good 2 1 2 does not change and his income does not change, but the price of good 1 decreases. (A) The substitution effect of the price change reduces the demand for good 2 and increases the demand for good 1. (B) The substitution effect reduces the demand for good 2, and since the income effect is zero, the demand for good 2 falls. (C) The substitution effect on the demand for good 2 is zero, since the price of good 2 did not change. (D) The income effect is zero, since his income remained constant

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