5.(12 points) Explain what would happen to the equilibrium consumption of two goods, X and Y, if:...
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5.(12 points) Explain what would happen to the equilibrium consumption of two goods, X and Y, if:
- Income doubled and all prices tripled, or;
- All prices doubled and income tripled, or;
- All prices and income doubled.
Assume that Goods X and Y are both normal goods.You are welcome to draw a graph to illustrate each outcome, if you wish.
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