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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.
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a. Determine the prices of goods X and Y.
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
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
- Hand written solutions are strictly prohibitedarrow_forwardIn the below figure, a consumer is initially in equilibrium at point C. The consumer's income is $750, and the budget line through point C is given by $750 = $150X + $375Y. When the consumer is given a $ 300 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: $ 150 Price of Y: $ 375 b. How many units of product Y could be purchased at point A? rmal or an inferior good? Product Y c Product X Farrow_forwardI need help with sub parts D-G. 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?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 Inferiorarrow_forward
- Parts d-h please!arrow_forwardPlease answer fastarrow_forwardA consumer is choosing between magazines and books. His set of čonsumer optimums are shown on the graph to the right. 50 Consumer income allocated for these two goods is equal to $150. The price of magazines (P,) is equal to $5.00. 45- 40 How do these changes in the price of books affect the demand for magazines? 35 demand remains constant 30- We can consider books and magazines to be goods. 25- 20- 15- PCC substitute 10- 5- complementary 0- O 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 unrelated Books O étv 21 MacBook Air DII 80 F10 F11 F7 FB F9 F6 F4 F5 F3 F1 F2 * @ # $ 7 8 9 1 2 4 P T Y Q W J K S F く Z C V command oF option command O 回 .. - つ エ B ** A.arrow_forward
- Use the following table showing the marginal utility schedules for product X and product Y for an individual consumer. The price of product X is $4, and the price of product Y is $2. The income this consumer can allocate to purchase these two items i. PRODUCT X PRODUCT Y Quantity Marginal Utility x Quantity Marginal Utility y 1 32 1 24 2 28 2 20 3 24 3 16 4 20 4 12 5 16 5 8 When the consumer purchases their utility-maximizing combination of products X and Y what will be the total utility they will realize form their expenditure of their $20 income?arrow_forwardA consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 15 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should Multiple Choice a. decrease consumption of product X and increase consumption of product Y. b. increase consumption of product X and increase consumption of product Y. c. decrease consumption of product Y and increase consumption of product X. d. stick with the current consumption mix because it yields maximum utility.arrow_forward
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