The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $7 and the consumer's income is $700.
Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility maximizing equilibrium at point B on indifference curve II.
-Two points on this consumer's demand for good X are P_X = $______ and X = ______; and P_X = $______ and X = ______.

Question

The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $7 and the consumer's income is $700.

Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility maximizing equilibrium at point B on indifference curve II.
-Two points on this consumer's demand for good X are P_X = $______ and X = ______; and P_X = $______ and X = ______.

Quizplus · Accepted Answer

The Answer of The following figure shows a portion of a consumer's indifference map and budget lines. The price of good Y is $7 and the consumer's income is $700. Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility maximizing equilibrium at point B on indifference curve II. -Two points on this consumer's demand for good X are P_X = $______ and X = ______; and P_X = $______ and X = ______.

The Following Figure Shows a Portion of a Consumer's Indifference