Question: The gure below shows a consumer maximizing utility at two different prices (the left panel] and the consumer's demand for good X at the same

 The gure below shows a consumer maximizing utility at two different

The gure below shows a consumer maximizing utility at two different prices (the left panel] and the consumer's demand for good X at the same two prices of good X [the right panel). The price of good Yis $4.50. When the price of X increases from point 5 to point R along the demand curve. $ of income must be temporarily given to the consumer to isolate the substitution effect. q. '3 8 .E' -= E n. g G 6 Demand for X 06 _ 18 24 6 24 Quantity of X Quantity demanded DfX

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