behavior".

Examples

Suppose a consumer has a budget of $6 per day that he spends on food. He must eat three meals a day, and there are only two options: the inferior good, bread, which costs $1 per meal, and the superior good, cake, which costs $4 per meal. Cake is always preferable to bread. At present, he would purchase 2 loaves of bread and one cake, completely exhausting his budget to fill 3 meals each day. Now, were the price of bread to rise from $1 to $2, then the consumer would have no choice but to give up cake, and

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