Infоrmаtiоn fоr questions 17-23 The figure shows two of Zhаng’s indifference curves, in green. Zhаng’s income is $240. The price of good Y is kept constant throughout this problem, at $40. The price of good X goes up from $30 to $120. Four straight lines (the two solid blue and the two dashed blue lines) are shown, which should be helpful in this problem. Four consumption points, A, B, C, and D, are also shown as dots, and labeled for the units of good X and good Y that they represent. For example, A=(2.4,5) means “consumption point A, with 2.4 units of X and 5 units of Y,” and analogously for all other points shown. All four points are points of tangency between one indifference curve and one of the straight lines. Only exact answer is accepted, so make sure to double check your reasoning and calculations. Enter 0 if the answer cannot be obtained from the information given. Note: to get exact answers, don’t read anything off the scale of the figure. Rather, just take the point labels as given. When the price of good X goes up from $30 to $120, how much of the change in Zhang’s consumption of good X can be attributed to the substitution effect? If the part of the change attributable to the substitution effect is an increase of her consumption of good X, enter it as a positive number, and if it is a decrease enter it as a negative number.
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