Answer to Question #102783 in Microeconomics for Michael

Question

Given the consumption of two goods X and Y subject to their respective prices and a given income graphically derive the demand curve for good X in the case of price fall.

Answer 1

Solution

Let M=100, $p_y=20, Q_y=\frac {100}{20}=5$

$p_{x_1}=10, Q_{x_1}=\frac{100}{10}=10$

Then will be graph

If $p_{x_2}=5$ then $Q_{x_2}=\frac {100}{5}=20$

Will be next graph