Figure 5-14
Martha initially buys the combination of pens and pencils shown as A in Figure 5-14. After the prices of both goods change, she buys combination B. It must be true that
A. Martha prefers A to B.
B. Martha prefers B to A.
C. Martha is indifferent between A and B.
D. Martha’s preferences between A and B cannot be determined from the information given.
Answer: B
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