[Editor’s note: We’re bringing back price theory with our series on Price Theory problems with Professor Bryan Cutsinger. You can view the previous problem and Cutsinger’s solution here and here. Share your proposed solutions in the Comments. Professor Cutsinger will be present in the comments for the next two weeks, and we’ll again post his proposed solution shortly thereafter. May the graphs be ever in your favor, and long live price theory!]
Ask:
Consider a consumer who uses her monetary income to purchase only two goods: X And Y. Suppose the prices of these goods double, as does this consumer’s monetary income. Evaluate: There will be no change in quantities X And Y she buys.
Share your questions and suggested solutions in the comments!