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A consumer's budget set for two goods ( X and Y ) is 800 4 X + 2 Y . a. Illustrate the budget set
A consumer's budget set for two goods (X and Y) is 800 4X +2Y. a. Illustrate the budget set in a diagram. Instructions: Use the tool provided 'Budget Set' to draw the budget set from X = 0 to Y = 0. Draw only the endpoints.
b. Does the budget set change if the prices of both goods double and the consumer's income also doubles?
multiple choice
- No, it does not change
- Yes, it shifts out from the origin
- Yes, it rotates clockwise
- Yes, it shifts in toward the origin
c. Given the equation for the budget set, what are the prices of the two goods? Good X: $ Good Y: $
What is the consumer's income?
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