Compare quantities demanded between the old and new bundles

Reference no: EM13245700

Suppose that the price of good x rises and price of good Y falls in such a way that the consumer's new optimal consumption bundle lies on the same indifference curse as his old bundle. Compare the quantities demanded between the old and new bundles. Now suppose that the consumer's income double. Graph this situation. Is one or more of the goods inferior? If so which one is it and why is it considered inferior.

Reference no: EM13245700

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