leads to buying less of the good (when the good is normal). In this example, the higher price for baseball bats

would cause Sergei to buy fewer bats for both reasons. Exactly how much will a higher price for bats cause

Sergei's bat consumption to fall? Figure 6.4 suggests a range of possibilities. Sergei might react to a higher

price for baseball bats by purchasing the same quantity of bats, but cutting his camera consumption. This

choice is the point K on the new budget constraint, straight below the original choice M. Alternatively, Sergei
148 6 • Consumer Choices

might react by dramatically reducing his bat purchases and instead buy more cameras.

The key is that it would be imprudent to assume that a change in the price of one good will only affect

consumption of that good. In our example, since Sergei purchases all his products out of the same budget, a

change in the price of baseball bats can also have a range of effects, either positive or negative, on his
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