Question
The table below gives two demand schedules of an individual for commodity X. The second (Qdx2) Resulted from an increase in the individual's money income
The table below gives two demand schedules of an individual for commodity "X". The second (Qdx2) Resulted from an increase in the individual's money income (whole keeping everything else constant)
1. Plot the points of the two demand schedules on the same set of axes and get the two demand curves.
2. What would happen if the price of "X" fell from $5 to $3 before the individual's income rose?
Ifthere was a decrease in the price "x" , the individual would purchase more, but not as many as she would with her income increase.
3. At the unchanged price of $5 for commodity "X", what happens when the individual's income rises?
4. What happens if at the same time that the individual's incomes rises, the price of "X" falls from $5 to $3?
5. What type of good is commodity "X"? Why?
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