Graph the effects of the following on separate graphs. Make sure to highlight the new budget constraint, the total, the income and substitution effect. Goods y and goods x are perfect substitutes. Your optimizing bundle is a corner solution consuming only goods y. The price of goods y increases.

Graph the effects of the following on separate graphs. Make sure to highlight the new budget constraint, the total, the income and substitution effect. Goods y and goods x are perfect substitutes. Your optimizing bundle is a corner solution consuming only goods y. The price of goods y increases.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 9SQ

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