(Solved): Suppose a consumer who purchases only two uds is making a utility-maximizing choice and then the pri ...

Suppose a consumer who purchases only two uds is making a utility-maximizing choice and then the price of one of the goods decreases. What will happen?

The consumer's purchasin "er will increase.

The consumer's utility will increase.

The consumer's income will increase.

Both

and

.

All of the above. Question 18 (Mandatory) (1.2 points) Listen An individual's demand curve for

Shows that the income effect is always negative.

Depends on how the individual's utility-maximizing choices change when the price of

changes.

Depends on how the individual's money income changes when the price of

changes.

Depends on how the individual's preferences change when the price of

changes.

Both

and

.