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:   Px = $25   Pz = $25 This consumer is consuming10 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? $______

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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:

 

Px = $25

 

Pz = $25

This consumer is consuming10 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? $______

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