Good X and good Z have a constant marginal rate of substitution (MRS) of one. Draw the price-consumption curve when the price of good X changes. Explain your graph

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A: Py = 20 , px = 30 , px' = 10 and M=90

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A:

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A: Answer- (A)   That is both increases

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A: "Correct answer is option (D)."

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A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

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A: The correct alternative is Negative and dominates the substitution effect.

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Q: (In this question we denote income by Y, not by W as in the lecture notes). The following figure…

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Q: ll there

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Q: If the price of good X is $40 and the price of good Y is $35  Find the value of Marginal rate of…

A: The information being given is:- Price of good (Px ) = $40 Price of good (Py ) = $35 We have to…