Wayne, a friendly, utility-maximizing consumer, lives in a two-good world in which he consumes positive amounts of Good X and Good Y when facing prices
and
, respectively. If the prices of both Good X and Good Y double (i.e. prices become
and
) while Wayne's income stays the same, which of the following must be true? (Check all that apply)
Group of answer choices
The effect on Wayne's budget constraint will be the same as him losing half of his income while facing the original prices pX and pY
There will be a parallel shift of Wayne's budget constraint towards the origin (which is the point (0,0))
Wayne's utility will decrease
Wayne will consume less of Good X and less of Good Y