A consumers budget set for two goods (X and Y) is 600 3X + 6Y. a.

Question:

A consumer’s budget set for two goods (X and Y) is ≥ 600 3X + 6Y.

a. Illustrate the budget set in a diagram.

b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? Explain.

c. Given the equation for the budget set, can you determine the prices of the two goods? The consumer’s income? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Economics and Business Strategy

ISBN: 978-0073523224

8th edition

Authors: Michael Baye, Jeff Prince

See More Books

Question Posted: Apr 18, 2014 08:59 AM

See More Questions

A consumers budget set for two goods (X and Y) is 500 2X + 4Y. a. Illustrate the budget set in a diagram. b. Does the budget set change if the prices of both goods double and the consumers income...
The joint density of X and Y is given by (a) Are X and Y independent? If, instead, f (x, y) were given by (b) Would X and Y be independent? f(x, y) = 10 x 0,y> otherwise 2 0
The joint density of X and Y is given by f(x, y) = ex/yey/y, 0 < x < , 0 < y < Compute E[X2|Y = y].
Cutler Manufacturing manufactures and distributes specialty piping used in the construction industry. Due to the recent contraction in the commercial construction market, the company has had...
Solve Problem using substitution y = x - 4 x + 3y = 12
Two distant galaxies are receding from Earth at 0.75c in opposite directions. How fast does an observer in one galaxy measure the other to be moving?
Describe the two phases of the BIRCH clustering algorithm.
An electric dipole with dipole moment p = (3.00i + 4.00j) (1.24 x 1030 C m) in an electric field E = (4000 N/C)i. (a) What is the potential energy of the electric dipole? (b) What is the torque...
XPO is a trucking company that transports goods nationwide. After an analysis of its costs, XPO has determined that it incurs a total of $150,000 of costs at the lowest level of service (200...
You need to calculate the estimated future availability of a cloud-based IT resource. You determine that only one possible event can occur for the cloud-based IT resource to become unavailable. As a...
In the following figure, a consumer is initially in equilibrium at point C. The consumers income is $ 400, and the budget line through point C is given by $ 400 $ 100X + $ 200Y. When the consumer is...
A worker views leisure and income as goods and has an opportunity to work at an hourly wage of $ 15 per hour. a. Illustrate the workers opportunity set in a given 24- hour period. b. Suppose the...
The file P02_12.xlsx includes data on the 50 top graduate programs in the United States, according to a recent U.S. News & World Report survey. Columns B, C, and D contain ratings: an overall rating,...
Consider: x3 + c (x 1)(x 3)(x + 1) (x + 3x + 9) (x + 2x + 5) How many partial fractions are there in the partial fraction decomposition of this function? How many unknowns (A, B, ...) must be...
Hand trace the following program. 1 y 0 2 for x in range (5): y = y + x 4 print ("x",x, "and y =", y) Note: You can shorten the prompts in your hand trace if you want to.
Determine the location using physics calculations to solve the problem. Show step by step details for how you solved the problem. I don't need an explanation explaining how to solve the problem. T By...
Give a brief explanation about the organization/company i.e., the products or services, number of employees, etc. Do a SWOT chart to help organize your ideas. Refer to resources in the reading for an...
How are organization "formal" and "informal" structures impacted in organizational change? Provide some examples. Compare and contrast Lewin's Change Model with Kotter's Change model. (Show how they...
Explain why the restaurant is making losses by doing a break-even analysis of revenues for the existing restaurant. Next, conduct a sensitivity analysis of the profits with volumes by estimating the...
In a nonmagnetic medium, E = 50 cos (10 9 t 8x) a y + 40 sin (10 9 t 8x) a z V/m find the dielectric constant r and the corresponding H.
Carla is an accountant for WidgetCo. In the course of her employment, she discovers that WidgetCos application for a patent has been approved. Before the news is announced publicly, she calls her...
Florida, like several other states, has passed a law that prohibits price gouging immediately before, during, or after the declaration of a state of emergency. Price gouging is defined as . . ....
In a recent speech, the governor of your state announced: One of the biggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages...
1. Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of...
A stock is expected to pay a dividend of $1.50 at the end of the year (i.e., D 1 = $1.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the...
The Hobby Shop has a checking account with a ledger balance of $1,700. The firm has $2,400 in uncollected deposits and $4,200 in outstanding checks. What is the amount of the disbursement float on...
An investment will pay you $34,000 in 11 years. If the appropriate discount rate is 6.1 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate...

A consumers budget set for two goods (X and Y) is 600 3X + 6Y. a.

Question:

Step by Step Answer:

a b Doubling all income and price leaves the budget set unc...View the full answer

Managerial Economics and Business Strategy

Students also viewed these Economics questions