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Assume That a Consumer Faces the Budget Constraints Shown

Question 88

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Assume that a consumer faces the budget constraints shown.
Assume that a consumer faces the budget constraints shown. 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 $320, what is the price of good X? c. If income in panel a is $175, what is the price of good Y? d. Give an example of prices that may produce the graphs in panel A and panel B (hint: what are the relative prices?)
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 $320, what is the price of good X?
c. If income in panel a is $175, what is the price of good Y?
d. Give an example of prices that may produce the graphs in panel A and panel B (hint: what are the relative prices?)

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a. The price of good Y is relatively low...

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