A consumer is in equilibrium at point A in the following figure. The price of item X
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Question:
A consumer is in equilibrium at point A in the following figure. The price of item X is $ 5
a. What is the price of item Y?
b. What is consumer income?
c. At point A, how many units of X are consumers buying?
d. Suppose the budget line changes so that consumers reach a new equilibrium point at B. What changes in the economic environment are causing this new equilibrium? Are consumers getting better or worse from these price changes?
Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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