Question: A consumer has two goods in his consumption bundle: bread and coffee. The current price of bread is $ 3 . 0 0 per loaf
A consumer has two goods in his consumption bundle: bread and coffee. The current price of bread is $ per loaf and the price of coffee is $ per cup.
What is the relative price of bread to coffee? bread per unit of coffeeenter your response round to one or two decimal places as appropriate
Suppose that the price of bread increases by and the price of coffee increases by
The relative price bread per unit of coffee has
Based on the substitution effect, we would expect our consumer to buy relatively more bread, relatively more coffee or make no change to this consumption bundle?
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