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Question: J. Doe consumes 30 units of good X and 60 units of good Y. The price of good Y is $4 and the price

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Question: J. Doe consumes 30 units of good X and 60 units of good Y. The price of good Y is $4 and the price of good X is $10. Assume that these choices are "optimal." Due to a bad harvest, the price of good X increases by $3. a) The local government wants to help J. Doe by sending them a check to cover the costs of the increase in the price of good X. Calculate the amount of the check that J. Doe will receive. b) True/False/Uncertain: Since J. Doe will receive a check that covers the increase in the price of good X, his demand for good X will not change. Hint: How will J. Doe's budget constraint change after the increase in the price of X and receiving the check from the local government

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