Use indifference analysis to demonstrate the income, Ask an Expert

Economics

Suppose your budget constraint for those two goods is: $1000 = 8K + 5Y

a) Graphically derive your own demand curve for good X if its price does down from $4 to $2 and from $2 to $1.

b) Use indifference analysis to demonstrate the income, substitution, and the total effects if good X is a non-Giffen inferior one.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M965318

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