2. A consumer buys only two goods, X and Y, with prices of pxand py and has an income of m. Use diagrams to indicate consumer preferences, including details of the marginal rate of substitution, in the cases where: (a) X is a Sierra Blue iPhone 13 Pro and Y is a Graphite iPhone 13 Pro. Assume that the consumer is indifferent between the two colours. (b) X is a right foot Nike Air Max Vapormax trainer and Y is a left foot Nike Air Max Vapormax trainer. (c) X is an iPad Pro and Y is a Balenciaga jacket. (d) Suppose that the consumer wins a substantial sum of money in the UK's National Lottery, how will this affect her consumption choices in each of the cases above? Illustrate the effects on your diagrams. (e) Suppose that due to supply change shortages, the price of X increases, how will this affect the consumer's choices in each of the cases above? Illustrate the effects on your diagrams.
2. A consumer buys only two goods, X and Y, with prices of pxand py and has an income of m. Use diagrams to indicate consumer preferences, including details of the marginal rate of substitution, in the cases where: (a) X is a Sierra Blue iPhone 13 Pro and Y is a Graphite iPhone 13 Pro. Assume that the consumer is indifferent between the two colours. (b) X is a right foot Nike Air Max Vapormax trainer and Y is a left foot Nike Air Max Vapormax trainer. (c) X is an iPad Pro and Y is a Balenciaga jacket. (d) Suppose that the consumer wins a substantial sum of money in the UK's National Lottery, how will this affect her consumption choices in each of the cases above? Illustrate the effects on your diagrams. (e) Suppose that due to supply change shortages, the price of X increases, how will this affect the consumer's choices in each of the cases above? Illustrate the effects on your diagrams.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1PA
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Transcribed Image Text:2. A consumer buys only two goods, X and Y, with prices of pxand py and has an income of m.
Use diagrams to indicate consumer preferences, including details of the marginal rate of
substitution, in the cases where:
(a) X is a Sierra Blue iPhone 13 Pro and Y is a Graphite iPhone 13 Pro. ASsume that the
consumer is indifferent between the two colours.
(b) X is a right foot Nike Air Max Vapormax trainer and Y is a left foot Nike Air Max
Vapormax trainer.
(c) X is an iPad Pro and Y is a Balenciaga jacket.
(d) Suppose that the consumer wins a substantial sum of money in the UK's National
Lottery, how will this affect her consumption choices in each of the cases above?
Illustrate the effects on your diagrams.
(e) Suppose that due to supply change shortages, the price of X increases, how will this
affect the consumer's choices in each of the cases above? Illustrate the effects on your
diagrams.
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