. Suppose we have the following information: utility function U=XY; I=200; Px=5 and Py=10. The consumer's optimal choices are X*=20 and Y*=10. a. Graph the consumer's ICC and Engel curve for X assuming that income increases to 400. b. Derive consumer's PCC for X assuming that price of X dropped to 2.5. Income level is 200. c. Derive consumer's demand curve for X.

. Suppose we have the following information: utility function U=XY; I=200; Px=5 and Py=10. The consumer's optimal choices are X=20 and Y=10. a. Graph the consumer's ICC and Engel curve for X assuming that income increases to 400. b. Derive consumer's PCC for X assuming that price of X dropped to 2.5. Income level is 200. c. Derive consumer's demand curve for X.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 3SQP

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