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You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down, and you are just as happy as you were before the price changes.
(A) Illustrate this situation on a graph.
(B) How does your consumption of the two goods change? How does your response depend on income and substitution effects?
(C) Can you afford the bundle of soda and pizza you consumed before the price changes?
How do I know whether these goods are complementary or not?
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