In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D. a. Determine the prices of goods X and Y. Price of X: $ Price of Y: $ b. How many units of product Y could be purchased at point A? c. How many units of product X could be purchased at point E?
In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D.
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a. Determine the prices of goods X and Y.
Price of X: $
Price of Y: $
b. How many units of product Y could be purchased at point A?
c. How many units of product X could be purchased at point E?
d. How many units of product X could be purchased at point B?
e. How many units of product X could be purchased at point F?
f. Based on this consumer’s preferences, rank bundles A, B, C, and D in order from most preferred to least preferred.
(Click to select) D, B, C, A D, C, A, B C, A, B, D A, B, C, D
g. Is product X a normal or an inferior good?
(Click to select) Normal Inferior
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In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D.
d. How many units of product X could be purchased at point B?
e. How many units of product X could be purchased at point F?
f. Based on this consumer’s preferences, rank bundles A, B, C, and D in order from most preferred to least preferred.
(Click to select) D, B, C, A D, C, A, B C, A, B, D A, B, C, D
g. Is product X a normal or an inferior good?
(Click to select) Normal Inferior
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