d. How many units of product X could be purchased at point B? e. How many units of product X could be purchased at point F? f. Based on this consumer’s preferences, rank bundles A, B, C, and D in order from most preferred to least preferred.   (Click to select)   D, B, C, A   D, C, A, B   C, A, B, D   A, B, C, D  g. Is product X a normal or an inferior good?   (Click to select)   Normal   Inferior

Question

I need help with sub-parts D-G. 

In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D.

 
 

a. Determine the prices of goods X and Y.

Price of X: $ 

Price of Y: $ 

b. How many units of product Y could be purchased at point A?



c. How many units of product X could be purchased at point E?



d. How many units of product X could be purchased at point B?



e. How many units of product X could be purchased at point F?



f. Based on this consumer’s preferences, rank bundles ABC, and D in order from most preferred to least preferred.

  (Click to select)   D, B, C, A   D, C, A, B   C, A, B, D   A, B, C, D 

g. Is product X a normal or an inferior good?

  (Click to select)   Normal   Inferior 

 

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