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Assume two consumers A and B with identical preferences over two goods X and Y as shown by the indifference curves I, and I, but
Assume two consumers A and B with identical preferences over two goods X and Y as shown by the indifference curves I, and I, but with unequal budget constraints A, A, and B, B,. Points E, and E; show their utility maximization equilibrium positions. Assume that the manufacturer of X drops the price of X to half its size to customers buying more than the volume L shown in the graph. Identify how the price discount affects, if at all, the utility maximization purchases of A and B Hint: after level L is reached, the angle by which A|A, and B,B, cut the horizontal axis is half of the size of the
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