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American Focus > Blog > Economy > EconLog Price Theory: Consumer Purchasing
Economy

EconLog Price Theory: Consumer Purchasing

Last updated: November 13, 2024 12:16 pm
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EconLog Price Theory: Consumer Purchasing
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Exploring Price Theory with Professor Bryan Cutsinger

Editor’s note: We’re diving deep into price theory with our ongoing series featuring Professor Bryan Cutsinger. If you missed the previous problem and solution, you can catch up here. Don’t forget to share your proposed solutions in the Comments section below. Professor Cutsinger will be actively engaging with readers for the next two weeks. Let the price theory games begin!

 

Question:

Imagine a consumer who allocates her income to purchase only two goods: X and Y. Now, envision a scenario where the prices of both goods double, along with the consumer’s money income. What happens next? Will the quantities of X and Y she buys remain unchanged?

 

Don’t hesitate to share your thoughts and proposed solutions in the Comments section below!

See also  What is Amazon Prime? Price, Benefits & Free Trials Explained
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