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Assume That a Consumer Faces the Following Budget Constraints

Question 261

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Assume that a consumer faces the following budget constraints. 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.
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.

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