Felipe consumes two goods, x and y. Their budget line at the beginning of the year had intercepts (0,30) and (30,0). While their income remained constant, prices changed and Felipe's budget line now has intercepts (0,20) and (10,0). The following 30 20 figure illustrates these budget lines. 10 10 20 30 Then, O The price of y decreased and the price of x increased O The price of x decreased and the price of y increased. O Both prices increased, and the price of x increased by a higher factor than the price of y O Both prices decreased, and the price of x decreased by a higher factor than the price of y O Both prices increased, and the price of y increased by a higher factor than the price of x

Felipe consumes two goods, x and y. Their budget line at the beginning of the year had intercepts (0,30) and (30,0). While their income remained constant, prices changed and Felipe's budget line now has intercepts (0,20) and (10,0). The following 30 20 figure illustrates these budget lines. 10 10 20 30 Then, O The price of y decreased and the price of x increased O The price of x decreased and the price of y increased. O Both prices increased, and the price of x increased by a higher factor than the price of y O Both prices decreased, and the price of x decreased by a higher factor than the price of y O Both prices increased, and the price of y increased by a higher factor than the price of x

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 19SQ

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