Assume that a consumer faces the following budget constraints.
a.
Assuming that income is the same on both occasions,describe the difference in relative prices between Panel A and Panel B.
b.
If income in Panel B is $126,what is the price of good X?
c.
If income in Panel A is $84,what is the price of good Y?
d.
Assuming that the price of good X is the same on both occasions,describe the difference in income and price of good Y between Panel A and Panel B.

Question

Assume that a consumer faces the following budget constraints.  
a.
Assuming that income is the same on both occasions,describe the difference in relative prices between Panel A and Panel B.
b.
If income in Panel B is $126,what is the price of good X?
c.
If income in Panel A is $84,what is the price of good Y?
d.
Assuming that the price of good X is the same on both occasions,describe the difference in income and price of good Y between Panel A and Panel B.

Quizplus · Accepted Answer

The Answer of Assume that a consumer faces the following budget constraints.  
a.
Assuming that income is the same on both occasions,describe the difference in relative prices between Panel A and Panel B.
b.
If income in Panel B is $126,what is the price of good X?
c.
If income in Panel A is $84,what is the price of good Y?
d.
Assuming that the price of good X is the same on both occasions,describe the difference in income and price of good Y between Panel A and Panel B.

Assume That a Consumer Faces the Following Budget Constraints