Suppose when our consumer faces the green budget constraint she would purchase RS packages of ramen noodles. (Notice again that she is on a higher indifference curve than before the price change so again we have overcompensated her in some sense by making her better off).

   Her total change in demand again is the change from RO to RN but RS represents an even greater level of consumption. As we will see, this is because it turns out that ramen noodles are an inferior good for our consumer.

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