A consumer is choosing between magazines and books. His set of čonsumeroptimums are shown on the graph to the right.50Consumer income allocated for these two goods is equal to $150. The price ofmagazines (P,) is equal to $5.00.45-40How do these changes in the price of books affect the demand for magazines?35demand remains constant30-We can consider books and magazines to begoods.25-20-15-PCCsubstitute10-5-complementary0-O 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80unrelatedBooksO étv21MacBook AirDII80F10F11F7FBF9F6F4F5F3F1F2*@#$789124PTYQWJKSFくZCVcommandoFoptioncommandO 回.. -つエB**A.

We can show that 1)We seen that PCC is horizontal, that means that change in price of books doesn't…

A consumer is choosing between magazines and books. His set of consumer optimums are shown on the graph to the right. Consumer income allocated for these two goods is equal to $150. The price of magazines (P,) is equal to $5.00. How do these changes in the price of books affect the demand for magazines? demand remains constant