A consumer is in equilibrium at point A in the diagram below. The price of good X is $5. a. What is the price of good Y? $ b. What is the consumer's income? $ c. At point A, how many units of good X does the consumer purchase? units
A consumer is in equilibrium at point A in the diagram below. The price of good X is $5. a. What is the price of good Y? $ b. What is the consumer's income? $ c. At point A, how many units of good X does the consumer purchase? units
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A consumer is in equilibrium at point A in the diagram below. The price of good X is $5.
a. What is the price of good Y?
$
b. What is the consumer's income?
$
c. At point A, how many units of good X does the consumer purchase?
units
d. Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium?
Is the consumer better off or worse off as a result of the price change?
|
a. What is the price of good Y?
$
b. What is the consumer's income?
$
c. At point A, how many units of good X does the consumer purchase?
units
d. Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium?
-
The price of good Y decreased to $2.50.
-
The price of good Y increased to $10.
-
The price of good X increased to $10.
-
The price of good X decreased to $2.50.
Is the consumer better off or worse off as a result of the price change?
-
Better off
-
Worse off
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