Question
A consumer purchases two goods, food, and clothing. The utility function is, where x denotes the amount of food consumed and y the amount of
A consumer purchases two goods, food, and clothing. The utility function is, where x denotes the amount of food consumed and y the amount of clothing. If income is $126, the equation of the demand curve for food is x = _$126_/(. If income is $120, when, the consumer buys_21_ units of x. When, the consumer buys_7 units of x. As theprice increases, the quantity demanded decreases. If the income rises to $240, the equation of the demand curve for food is x =_$240_/(. If income is $240, when, the consumer buys_40_ units of x, and when, the consumer buys_13.33_ units of x. As income increases, demand for x increases. In this example, food is a normal good.
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