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A basket of goods for a given consumer includes two goods, X and 2. Consumer income is equal to $1,500 and the prices of these
A basket of goods for a given consumer includes two goods, X and 2. Consumer income is equal to $1,500 and the prices of these two goods are as follows: PM = $25 P2 = $50 This consumer is consuming 10 units of good X. Suppose that over the course of a year, the price of good X changes by 20% and the price of good Z changes by - 25%. How much income would be required for the consumer to afford the same quantity of goods X and 2 with the new prices? $|:|
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