Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I hope all is well. Would you be so kind to help me solve this, please ? I am working on this problem now

Hello, I hope all is well.

Would you be so kind to help me solve this, please ? I am working on this problem now and would like to have an additional information to confirm my findings, and learn more along the way. Please provide in details your findings. I would like to understand the process of the calculations, not just the answers. Please do not provide incorrect or confusing information. Thank you very much for your help.

image text in transcribedimage text in transcribed
Use the information given in the following figure to answer these questions. 120 Price of X 24 A 54 M 12 B Demand for X 0 24 36 72 108 Qd 72 Quantity of X Quantity demanded of Xa. The consumer's income is $5,832. 108 * $54 = 5,832 b. The price of Y is $81. c. When the price of X is $54, the marginal rate of substitution is 2/3 72/108 =2/3. d. The equation of the budget line passing through point A is Y = 72-2/3 X. e. At point L on the demand curve for X, the price of X is $162. f. At point L on the demand curve for X, the quantity demanded is g. At point B on the indifference curve I, the MRS is h. At point B, the consumer's income is $ When the price of X increases from point M to point L along the demand curve: i. How much income must be given to the consumer to isolate the substitution effect? 120-72*81 =3,888 j. The substitution effect of the price increase is k. The income effect is of the price increase is 1. The total effect of the price increase is m. Is this good inferior? Why or why not? Yes, this particular good is inferior. The reason for that would be the income and substitution n. Is this good a Giffen good? Why or why not

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions

Question

Briefly describe Hartleys contributions to associationism.

Answered: 1 week ago