A consumer has 120 and faces prices px 5 and py10 draw its


a. A consumer has $120 and faces prices px =$5 and py=$10. Draw its budget set.

b. Suppose its income were to fall to $60. Draw the new budget set.

c. Assume income is again $120, but the prices double to $10 and $20, respectively. Draw the new budget set and compare it to that in part (b).

d. Suppose income is $120, but only the price of x doubles from the original prices. Draw the new budget set and compare it to that in part (a).

e. Suppose its income were to double to $240 but both px and py were to double to $10 and $20, respectively. Draw the new budget set and compare it to that in part (a).

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Business Economics: A consumer has 120 and faces prices px 5 and py10 draw its
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