Question

A consumer is maximizing her utility subject to budget constraints. Price changed make consumer less well than before. Therefore at old price her new bundle cost less than her old bundle. True or false explain​

Answer 1

Explanation:

The budget constraint framework suggest that when income or price changes, a range of responses are possible. When income rises, households will demand a higher quantity of normal goods, but a lower quantity of inferior goods.

I hope this answer is helpful to you please follow me and thank my all answers.. ❤❤