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Question 3: In the figure below, point A represents Ethel's preferred bundle of goods X and Y. The price of good X is $14/unit. 140-
Question 3: In the figure below, point A represents Ethel's preferred bundle of goods X and Y. The price of good X is $14/unit. 140- A IC1 Qx 12 203.a) What is the price of good Y? 3.b) What is Ethel's total income? 3.c) How much of good Y does Ethel choose to buy? 3.d) Suppose Ethel gets a promotion at her job and now her total income is $630. Draw Ethel's new budget constraint. Indicate on the figure the value of the budget constraint's slope. Also indicate at which value of Y her budget constraint intersects with the vertical axis
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