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. Determine the prices of goods Xand Y.Price of X: $ Price of Y: $ b. How many units of product Ycould 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 In the below figure, a consumer is initially in equilibrium at point C. The consumer's income is $400, and the budget line through pointC is given by $400 = $100X + $200 Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to anew equilibrium at point D.Product YВAFProduct X

A consumer has the following budget line:

Answered: In the below figure, a consumer is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.

Determine the prices of goods Xand Y.

Price of X: $

Price of Y: $

b. How many units of product Ycould 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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