An individual who spends his income on two goods only


An individual who spends his income on two goods only, spends initially, exactly the same amount on each good. The price of x has risen by 20%while the price of y fell by 20%. The agent will be neither better nor worse offas a result of the changes. True or false, explain.

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Macroeconomics: An individual who spends his income on two goods only
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