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QUESTION 2 = , and budget line is 200 P xx + 1 Oy For your response to the question below, please upload only
QUESTION 2 = , and budget line is 200 P xx + 1 Oy For your response to the question below, please upload only a scanned image using a free scanner app for smartphones, or using a dedicated scanner. a. For three different price levels for good x, Px = 10, 12 and 14, derive the optimal y and x bundles. Write your answer on the scanned document you will upload for this question. b. Using the information from part A above, sketch the demand curve for good x that correspond to the price changes. Upload your sketch as your answer to this question. c. Derive the effect an increase in income to $240 will have on the optimal bundles for each Px level ( P and 14). Write your answer on the scanned document you will upload for this question. d. On the same sketch as part B, sketch the demand curve for good x corresponding to the optimal bundles derived in part C.
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