Answer to Question #77534 in Microeconomics for Farah

Question

What will be shape of the price consumption curve if X and Y are substitute goods. What can you about the own and cross price elasticities of demand, Explain using graph

Answer 1

The price consumption curve is upward-sloping if X and Y are substitute goods. The own price elasticities of demand for these goods may be different and cross price elasticity of demand is positive.