Question
Asked Oct 24, 2019
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The diagram to the right shows a consumer's indifference map for goods X and Y plus
three budget lines. The consumer's income is $120, and the price of Good Y is $12
Each budget line is based on a different price for Good X.
The price of Good X is $12 along budget line La, $20 along budget line L2 and S
8-
along L. (Enter your response as an integer.)
7-
A
U2
2-
1
UL
L3
L2
0-
Good X
A poos
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The diagram to the right shows a consumer's indifference map for goods X and Y plus three budget lines. The consumer's income is $120, and the price of Good Y is $12 Each budget line is based on a different price for Good X. The price of Good X is $12 along budget line La, $20 along budget line L2 and S 8- along L. (Enter your response as an integer.) 7- A U2 2- 1 UL L3 L2 0- Good X A poos

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Expert Answer

Step 1

To find the price of good X along the indifference curve L1.

Step 2

From the indifference curve, it is clearly visible that the consumer purchases 1.5 units of good X. Since 5 units of goo...

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