In the given problem ------
Px=20$
Py=50$
Income= 1000$
As consumer consumes 10 units of good X, the quantity of good Y will be 16 units .
So ,existing consumption bundle of X&Y is 10 & 16
Now ,if Px decreases by 10% and Py increases by 10%------
Px= 18$,Py=55$
18×10+55×16=1060
The income level required to maintain same bundle =$1060
*RaTe of inflation is 6%{ ( 1060-1000)/1000}×100}
*No, the consumer can not afford same bundle of goods with the original income level ,with new prices.
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