Current market prices for Good X and Good Y are PX = 30 and FY = 10. Ellen's income that she has available to purchase X and Y is is M = 150. She is a utility maximizer, and consumes integral quantities of X and Y. 16. 17. 18. 19. Ellen's marginal rate of substitution at her utility maximizing basket of X and Y equals units of Y per unit of X. a) 1/3 b) 2/3 c)3/2 d)2 e)3 The price of good X falls to PX = 10. The price of good Y and Ellen's income remain unchanged. The change in Ellen's quantity demanded of good X following this fall in the price of X due to the substitution effect equals _ units of X. a) 2 b) 1 c) 0 (1) +1 e) +2 The price of good X falls to PX = 10. The price of good Y and Ellen's income remain unchanged. The change in Ellen's quantity demanded of good X following this fall in the price of X due to the income effect equals _ units of X a) 2 b) 1 c) 0 (1) +1 e) +2 In this range of income and prices, Ellen considers goods X and Y to be: a) complementary goods b) substitute goods c) normal goods d) inferior goods e) Both b) and c) are correct