Henry initially consumes the quantity of pens and pencils


Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .

A) Henry prefers A to B.

B) Henry prefers B to A.

C) Henry is indifferent between A and B.

D) Henry considers pens and pencils to be perfect substitutes.

E) Henry preferences cannot be determined from the information given.

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Business Economics: Henry initially consumes the quantity of pens and pencils
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