• A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5.
• What is the price of good Y?
• What is the consumer's income?
• At point A, how many units of good X does the consumer purchase?
• Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium? Is the consumer positively or negatively affected by the price change?

Transcribed Image Text:

Product YA 45 40 35 30 25 20 15 10 5 0+ B 20 Product X Product YA 45 40 35 30 25 20 15 10 5 0+ B 20 Product X

Answer rating: 100% (QA)

ANSWER step 1 of 4 a The maximum quantity of a commodity goodX that is affordable with the given inc... View the full answer