Question
1. Suppose a consumer with an income of $100 is faced with P x = $1 and P y = $0.50. What is the price
1. Suppose a consumer with an income of $100 is faced with Px = $1 and Py = $0.50. What is the price ratio between good X (horizontal axis) and good Y (vertical axis)?
2. If the price of good X is $10 and the price of good Y is $5, how much of good X can the consumer purchase if her income is $15 and she spends it entirely on purchasing good X?
3. Given that income is $500 and PX = $20 and PY = $5, what is the price ratio between goods X (horizontal axis) and Y (vertical axis)?
4. What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and Px = $5, Py = $10, X = 20, and I = 500?
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Macroeconomics Policy And Practice
Authors: Frederic Mishkin
2nd Edition
0133424316, 978-0133424317
