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n the below figure, a consumer is initially in equilibrium at point C. The consumer's income is $600, and the budget line through point C

n the below figure, a consumer is initially in equilibrium at point C. The consumer's income is $600, and the budget line through point C is given by $600 = $100X +$200Y.When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D.

"The horizontal axis is labeled Product X. The vertical axis is labeled Product Y. A line begins at point A on the vertical axis goes down to the right and ends at point E on the horizontal axis. A second line parallel to the first one begins at point B in the first quadrant close to point A, goes down to the right and ends at point F on the horizontal axis. A horizontal line connects point A and B. An upward-facing curve labeled l-subscript 1 begins at the top left of the quadrant along the vertical axis, goes down to the right in decreasing steepness, intersects the horizontal line [AB], meets the first line at point C then continues with increasing to the right and above the line to exit the right of the quadrant. An upward-facing curve labeled l-subscript 2 begins at the top left of the quadrant, goes down to the right in decreasing steepness, meets the second line at point D then continues with increasing steepness to the right and above the line to exit the right of the quadrant."

a. Determine the prices of goodsXandY. Price of X: $ Price of Y: $

b. How many units of productYcould be purchased at point A?

c. How many units of productXcould be purchased at point E?

d. How many units of productXcould be purchased at point B?

e. How many units of productXcould be purchased at point F?

f. Based on this consumer's preferences, rank bundlesA,B,C, andDin order from most preferred to least preferred.

(Click to select) A, B, C, D D, B, C, A D, C, A, B C, A, B, D

g. Is productXa normal or an inferior good?

(Click to select) Inferior Normal

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