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Review the diagram to the right. Consumer income is equal to $240. (Note: referring to the budget line, the 80- vertical intercept is 64 and
Review the diagram to the right. Consumer income is equal to $240. (Note: referring to the budget line, the 80- vertical intercept is 64 and the horizontal intercept is 80.) 70- With the information given: 60- What is the current price of Gasoline? $ 3 . What is the current price of all other goods? $ 3.75 . 50- B3 TR Suppose that the price of gasoline increases by 5% and All Other Goods 40- the price of all other goods increases by 10%. 30- 1.) Use the line drawing tool to show the new budget line (you may round intercept values to the nearest integer). 20- Label this line 'B2 10- 2.) Use the line drawing tool to draw another budget line such that consumer income increases by 8.1%, an B amount necessary to allow for purchasing the original 0 10 20 30 40 50 60 70 80 90 bundle of goods shown by point 'R'. Label this line 'B 3. Gasoline (per week) Carefully follow the instructions above, and only draw the required objects. Given the higher level of income, is this consumer better off, worse off, or the same? The same
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