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5. Which is the consumer's demand curve for X in the following graph if the price of Y is $50. In your answer, write down the rationale for your choice. 300 130- 100 0 Y U₁ 600 1,000 U3 1,500 25 15 10 0 PX 400 600 D₁ D4 1,000 1,500

5. Which is the consumer's demand curve for X in the following graph if the price of Y is $50. In your answer, write down the rationale for your choice. 300 130- 100 0 Y U₁ 600 1,000 U3 1,500 25 15 10 0 PX 400 600 D₁ D4 1,000 1,500

Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
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5. Which is the consumer's demand curve for X in the following graph if the price of Y is $50. In your answer, write down the rationale for your choice. 300 130 100 0 Quantity of Y 60 600 48 B 1,000 D A 18 24 U3 1,500 Quantity of X X 11 25 15 10 0 6. The figure 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 Y is $4.50. When the price of X increases from point S to point R along the demand curve, the substitution effect of the price increase is and the income effect is PX Price of X 400 600 6 D₁ R D4 1,000 24 D₂ ·D3 Quantity demanded of X 1,500 Demand for X
Transcribed Image Text:5. Which is the consumer's demand curve for X in the following graph if the price of Y is $50. In your answer, write down the rationale for your choice. 300 130 100 0 Quantity of Y 60 600 48 B 1,000 D A 18 24 U3 1,500 Quantity of X X 11 25 15 10 0 6. The figure 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 Y is $4.50. When the price of X increases from point S to point R along the demand curve, the substitution effect of the price increase is and the income effect is PX Price of X 400 600 6 D₁ R D4 1,000 24 D₂ ·D3 Quantity demanded of X 1,500 Demand for X
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