Question: LS In the below diagram a consumer starts off optimizing at point A, then after a market shift they optimize at point B. Which of

 LS In the below diagram a consumer starts off optimizing at

LS In the below diagram a consumer starts off optimizing at point A, then after a market shift they optimize at point B. Which of the following is true? X2 A X1 (Note: if unable to see the above image click on this link ( ) O good 2 became more expensive; good 1 is a complement for good 2 good 2 became less expensive; good 1 is a substitute for good 2 O good 2 became more expensive; good 1 is a substitute for good 2 O good 2 became less expensive; good 1 is a complement for good 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!