Question: about intermicro 3) Suppose an individual is endowed with an and 02 amount of good 1 and good 2 and consumes X1 X: of good

about intermicro

3) Suppose an individual is endowed with an and 02 amount of good 1 and good 2 and consumes X1 X: of good 1 and good 2 respectively. i. Simw in graph a consumer who is net seller of good 2 and net buyer of good 1 {5} ii. What happens to the welfare of above individual if price of X1 decreases? Explain your answer logically with the help of a graph (5} Consider Production Function 1' = L\" K 1'" Let w is the price of labor input (L), r is the Price of capital input (K), and P is the price of output Y

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