(Solution) - Restaurant meals and housing measured in the number of rooms -(2025 Original AI-Free Solution)

Paper Details

Restaurant meals and housing (measured in the number of rooms) are the only two goods that Neha buys. She has income of $1,000. Initially, she buys a consumption bundle such that she spends exactly half her income on restaurant meals and the other half of her income on housing. Then her income increases by 50%, but the price of restaurant meals increases by 100% (it doubles). The price of housing remains the same. After these changes, if she wanted to, could Neha still buy the same consumption bundle as before?