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Unformatted text preview: 300, and the bundle chosen is (X = 150, Y = 300). When Px = $5, the horizontal intercept of the budget constraint (X-axis) should be 120, and the bundle chosen is (X = 60, Y = 300). The PCC is the horizontal line that joins these bundles. 2. (6 points) Refer to the diagram below. Assuming the consumer has $10 to spend, identify three price/quantity combinations which are on the consumer’s demand curve for Snacks. Price of Snacks Quantity of Snacks $.25 10 $.5 7 $1 5 3. (4 points) What is being measured on the vertical and horizontal axes when graphing a) an Engel Curve? Income on the vertical axis, and quantity of good X on the horizontal axis. b) a price-consumption curve Quantity of good Y on the vertical axis and the quantity of good X on the horizontal axis....
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This note was uploaded on 12/18/2008 for the course ECON 302 taught by Professor Kurrejamesantho during the Fall '08 term at Penn State.
- Fall '08