Show that the price-consumption curve can be horizontal or downward sloping. Assume that the price of good X on budget line L¹ is p₁. Then the price of good X decreases to p2, pivoting the budget line to L². Using the line drawing tool, draw the price-consumption curve. Label this line 'Price-consumption curve.' Carefully follow the instructions above, and only draw the required object. Y, Good Y X, Good X

Show that the price-consumption curve can be horizontal or downward sloping. Assume that the price of good X on budget line L¹ is p₁. Then the price of good X decreases to p2, pivoting the budget line to L². Using the line drawing tool, draw the price-consumption curve. Label this line 'Price-consumption curve.' Carefully follow the instructions above, and only draw the required object. Y, Good Y X, Good X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Show that the price-consumption curve can be horizontal
or downward sloping.
is
Assume that the price of good X on budget line L¹
P₁.
Then the price of good X decreases to p2, pivoting the
budget line to L².
Using the line drawing tool, draw the price-consumption
curve. Label this line 'Price-consumption curve.'
Carefully follow the instructions above, and only draw the
required object.
C
Y, Good Y
X, Good X
+3_~Z

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