Question 1

Use the following graph showing a consumer's budget line and some indifference curves to answer the following questions. The consumer's income is $600.
 
-If the consumer is buying the combination at point B, the MRS is ______ than the price ____________, so the consumer should buy more ______ and less ______ to increase utility. At point B,  is ____________ than the  .

Accepted Answer

The answer of Use the following graph showing a consumer's...

Question 2

The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $17 and the consumer's income is $7,650. Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I. -Two points on this consumer's demand for good X are P_X= $_________ and X = _________; and P_X = $_________ and X = _________.

Accepted Answer