A consumer is in equilibrium at point A

Question # 00075549 Posted By: solutionshere Updated on: 06/13/2015 03:36 AM Due on: 06/13/2015
Subject General Questions Topic General General Questions Tutorials:
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A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5.
a. What is the price of good Y?
b. What is the consumer’s income?
c. At point A, how many units of good X does the consumer purchase?

d. 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 better off or worse off as a result of the pricechange?
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  1. Tutorial # 00070263 Posted By: solutionshere Posted on: 06/13/2015 03:37 AM
    Puchased By: 2
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    Y has reduced. The slope ...
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    2410011_Solution.docx (21.85 KB)

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