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Could someone help me to understand this diagram Px = $5 and Py = $10 Px increases to $10 Initial Equilibrium A B 32 25

Could someone help me to understand this diagram

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Px = $5 and Py = $10 Px increases to $10 Initial Equilibrium A B 32 25 Uo 22 -sulwallet ant covig ers boy C - U1 X 18 221 30 40 80 APX at konis Wiv amero entwollot of wod lovenest X 18 22 30 1. Complete the diagram. 2. With the given data, consumer's initial income is $............ 3. If Px increase, and if he is not compensated, he will consume ....... ....units of X, and ....... units of Y. 4. If he is compensated, he will consume........units of X and ............ .. units of Y. 5. His CV (Hicks) is $.. 6. His CV (Slutsky ) is $........... 7. The price effect can be decomposed as: X: . . . . . Y: PE SE IE8. Price Elasticity of demand for X at point A = - Hence X is a normal/inferior good with elastic/inelastic demand. 9. Cross-Price elasticity of demand for Y with respect to the price of X at point A is Hence X and Y are: normal/substitutes/complements/inferior/giffen goods. 10. Income Elasticity of demand for X at point B =.. .. . . .. ... .. Hence X is a normal/an inferior/Giffen goods. 3. You are given the following: 2001 2002 Px Qx 50 Py Qy 10 10 30 Px Qx Py Qy 12 40 8 50 Calculate the CV of Slutsky in 2002. 1. Answer how the following events will affect the demand, supply, equilibrium quantity, and equilibrium price of the commodity in question. Use "0" for no change, "+" for increase, "-" for decrease, and "?" for indecisive change. (4 pts.) Commodity Event D S P Q Petroleum OPEC cuts oil Production. Auto makers make more electric cars. Laptops Companies replacing desktops by laptops, but LCD screens become twice more expensive. 2. Suppose the price of gasoline increases from $1.00 to $1.40 per gallon, and the price elasticity of demand for gasoline is -0.5. The consumer expenditure will a. Rise 12% C. Fall 12% b. Rise 20% d. remain unchanged 4. If MR = 20 and Price is 30, the point elasticity of demand is a. -3.0 i.e., elastic demand c 3.0 i.e., Giffen good b. -0.3 i.e., inferior good d.-0.5 i.e., inelastic good

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