A consumer uses all income to buy only two goods, X and Y. At first, the consumer is in equilibrium and is maximising total utility. Then the consumer’s preferences alter, so that consuming good Y gives less utility. The prices of both goods stay unchanged. What response would be rational for the consumer?
- Abuy more of good Y and buy less of good X
- Bbuy less of good Y and buy more of good X
- Cbuy unchanged amount of good Y and buy more of good X
- Dbuy less of good Y and buy unchanged amount of good X