Assume That a Consumer Faces the Budget Constraints Shown

question 88

Essay

Assume that a consumer faces the budget constraints shown.

a. Assuming that income is the same on both occasions, describe the difference in relative prices between panel a and panel b.
b. If income in panel b is $320, what is the price of good X?
c. If income in panel a is $175, what is the price of good Y?
d. Give an example of prices that may produce the graphs in panel A and panel B (hint: what are the relative prices?)

---

Definitions:

Offensive Touching

An intentional contact with another person in a harmful or offensive manner without the person's consent.

Consent

This refers to the agreement or permission given by a person for something to happen or for someone to do something, typically requiring full understanding and willingness.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious conduct.

Defendant

The person, party, or entity against whom a civil or criminal lawsuit is filed in a court of law.