A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $1,500 and the prices of these two goods are as follows: P= $20 P, $25 This consumer is consuming 10 units of good X. Suppose that over the course of a year, the price of good X changes by 10% and the price of good Z changes by -10%. How much income would be required for the consumer to afford the same quantity of goods X and Z with the new prices? S

A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $1,500 and the prices of these two goods are as follows: P= $20 P, $25 This consumer is consuming 10 units of good X. Suppose that over the course of a year, the price of good X changes by 10% and the price of good Z changes by -10%. How much income would be required for the consumer to afford the same quantity of goods X and Z with the new prices? S

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 1SQP

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