Yesterday, you purchased 5 pens and 12 folders. what if the price of pens rose by $3 and the price of folders declined by $2? with your income unchanged and prices for other goods remaining the same, what actions would you most likely take?

Answer by Guest

The consequences will be that I will purchase less quantity of pens and more quantity of folders.

In the beginning, I purchased 5 pens and 12 folders. Let's assume that the cost of Pens is $x and cost of folders is $y. Now, after price change the new cost of pens will be equal to $(x + 3) and cost of folders will be equal to $(y - 2). Now, since the income remains unchanged, the decisions will solely be based on the new costs of the items to be purchased. This is a factor of the Law of Demand. All other things - income & prices of other goods - are already determined to be equal or constant. In this case, I will purchase more of the good whose price has fallen and less of the good whose price has risen which would result in me buying more folders and lesser pens.

Learn more about Law of Demand at:

brainly.com/question/24280877

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