(Solved):Consider two goods, x_1 = oatmeal raisin cookies and x_2 = composite good. Assume oatmeal raisin cookies are a normal good. And assume that the consumer faces the standard budget line, p_1 x_1 + p_… View Answer

Question:

Consider two goods, x_1 = oatmeal raisin cookies and x_2 = composite good. Assume oatmeal raisin…

Consider two goods, x1=x1= oatmeal raisin cookies and x2=x2= composite good. Assume oatmeal raisin cookies are a normal good. And assume that the consumer faces the standard budget line, p1x1+p2x2=mp1x1+p2x2=m (you may set p2=1p2=1 if you want).

A) Suddenly the price of oatmeal raisin

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