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In 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

In 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

Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 6SQP
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In 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 F
Transcribed Image Text:In 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 F
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