Suppose prices for next year are px 3 and py 5 and income, Ask an Expert

Economics

Jones spends all of his income on two goods. The prices and quantities consumed last year are as follows: PX = 2, X = 50, PY = 10, and Y = 10.

a. Assume that his preferences do not change and they are normal shaped indifference curves. Suppose prices for next year are PX = 3 and PY = 5 and income equals $180. Is he better off, worse off, or indifferent next year? describe by graphing two exs.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M970968

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