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