Final answer:
Antonio's welfare after a price change is contingent upon the specifics of the change. If prices decrease for his regularly purchased goods, he may be better off due to increased purchasing power. If they increase without a corresponding increase in income, he may be worse off due to decreased purchasing power.
Step-by-step explanation:
To determine whether Antonio is better or worse off after the price change, we need to consider factors such as the nature of the price change, the types of goods or services involved, and Antonio's consumption habits. If the prices of goods Antonio regularly purchases have decreased, and his income remains constant, he would be better off because he can now purchase more with the same amount of money.
This is known as an increase in real purchasing power. Conversely, if the prices of goods he regularly buys have increased, and his income remains unchanged, he would be worse off, as his purchasing power has decreased.
However, it's important to consider that the impact on Antonio's well-being is also affected by the relative importance of the goods with price changes in his overall consumption. If the price changes affect goods that he spends only a small portion of his income on, the overall impact might be minimal. On the other hand, if the price changes pertain to essential items that make up a significant part of his budget, the impact could be substantial.
The complete question is: Is Antonio worse or better off after the price change? Please explain. is: