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3) Suppose I=$IDDD, Py=$l, Px=$2 and the consumer starts in equilibrium at ea If PX decreases to $10, derive the demand curve for X based

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3) Suppose I=$IDDD, Py=$l, Px=$2 and the consumer starts in equilibrium at ea If PX decreases to $10, derive the demand curve for X based on the given budget lines and indifference curves and show it on the diagram below. Is demand for good X elastic or inelastic in the relevant price range? (5 marks] Y 100 ' 65 60 25 45 50 100 x Px

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