A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $1,500 and the prices of these two goods are as follows: P= $20 P, $25 This consumer is consuming 10 units of good X. Suppose that over the course of a year, the price of good X changes by 10% and the price of good Z changes by -10%. How much income would be required for the consumer to afford the same quantity of goods X and Z with the new prices? S

A consumer has an annual budget constraint for two goods: “housing sq. ft." and "$ for everything else". Draw the budget constraint for this consumer if income (v) = $50,000 and price per sq. ft. of housing, ph, is S200. Please be sure to fully label your graph (i.e., slope, intercept, etc.). Note: plot "housing sq. ft." on the x-axis. How would this consumer's budget line change if she received a $5,000 raise and the price of housing increased to $250? Include a graph with your answer. How did the economic rate of substitution (ERS) between housing and $ for everything else change when pa changed? Please interpret the ERS both before and after the price change.

Anne likes pizza and chicken wings. Pizza costs $4 per slice, and chicken wings cost $10 for a dozen. Let P denote the number of slices of pizza and C the number of dozens of chicken wings. If Anne's total income is $50, her budget line is: xP+ xC=

A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $200 and the prices of these two goods are as follows: Px = $20 Pz = $25. Suppose that over the course of a year, the price of good X increases by 150% and the price of good Z decreases by 50%. Use the line drawing tool to show this change in prices by drawing a new budget constraint for the same level of income. Label this line 'L²₁. Carefully follow the instructions above, and only draw the required object. Using the income ratio and the consumption bundle R shown in the diagram to the right, what is the rate of inflation?%. (Enter a numeric response using a real number rounded to two decimal places.) C Good Z 16- 14- 12- 10- 8- 6- 4. 2- 0- 0 -2 4 | 2 + R 6 8 Good X 10 12 14 16