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As shown in the diagram below, the price of good X has changed. a. Which is larger, P1 or P2 ? b. How much of
As shown in the diagram below, the price of good X has changed. a. Which is larger, P1 or P2 ? b. How much of good Y does the individual consume after the price of good X increases? Use any two of the four letters along the y-axis. c. If the price of good X increases, does the quantity of good X demanded increase or decrease? Please circle the correct word. d. Is the demand curve for good X between prices P1 and P2 downward sloping? Yes or No. Please circle your answer. e. Are goods X and Y substitutes, complements, neither, or is it impossible to tell '? Please circle your answer. f. Is the consumer's demand curve for good X between these two prices inelastic, elainc, unit elastic, or is it impossible to tell ? Please circle your answer and briefly explain your
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