T/F/U: Garrett's utility function is U(a,b) = a*b, where a is his consumption of apples and b is his consumption of bananas. If prices and income change in such a way that Garrett's old consumption lies on his new budget line, then Garrett will not change his consumption bundle. (Draw Garrett's budget line and some indifference curves to illustrate your answer.)
Answer: False
Get Answers For Free
Most questions answered within 1 hours.