(Figure: Good Y and Good X VI) Answer the following questions.
a. What is the income expansion path?
b. What quantities of good X does the income expansion path go through?
c. Draw the Engel curve for good X. Assume that the price of good X is $100 per unit and the price of good Y is $100 per unit.
d. What is the income elasticity of demand for good X if income increases from $1,200 to $1,600?

Question

(Figure: Good Y and Good X VI) Answer the following questions.  
a. What is the income expansion path?
b. What quantities of good X does the income expansion path go through?
c. Draw the Engel curve for good X. Assume that the price of good X is $100 per unit and the price of good Y is $100 per unit.
d. What is the income elasticity of demand for good X if income increases from $1,200 to $1,600?

Quizplus · Accepted Answer

The Answer of (Figure: Good Y and Good X VI) Answer the following questions.  
a. What is the income expansion path?
b. What quantities of good X does the income expansion path go through?
c. Draw the Engel curve for good X. Assume that the price of good X is $100 per unit and the price of good Y is $100 per unit.
d. What is the income elasticity of demand for good X if income increases from $1,200 to $1,600?

(Figure: Good Y and Good X VI) Answer the Following