1. Assume that when the price of X decreases the consumption of Y remains the same. Draw the appropriate indifference curves and budget lines, label the axes, and the optimal consumptions. Also, in your graph show and label the price-consumption curve. How would you determine, using your graph, if X is a normal good? Explain
1. Assume that when the price of X decreases the consumption of Y remains the same. Draw the appropriate indifference curves and budget lines, label the axes, and the optimal consumptions. Also, in your graph show and label the price-consumption curve. How would you determine, using your graph, if X is a normal good? Explain
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 8E
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![1. Assume that when the price of X decreases the consumption of Y remains the same. Draw the appropriate
indifference curves and budget lines, label the axes, and the optimal consumptions. Also, in your graph show and label
the price-consumption curve. How would you determine, using your graph, if X is a normal good? Explain](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0126f80-f7e1-4dd7-b005-d42474db3d61%2F607c56dc-8c05-4a67-a673-0e64ac61e327%2Fkv9bt3f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Assume that when the price of X decreases the consumption of Y remains the same. Draw the appropriate
indifference curves and budget lines, label the axes, and the optimal consumptions. Also, in your graph show and label
the price-consumption curve. How would you determine, using your graph, if X is a normal good? Explain
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