Question
suppose an individual's utility function is U(x,y) = x * y and her total budget is $72. the price of y is always $1 but
suppose an individual's utility function is U(x,y) = x * y and her total budget is $72. the price of y is always $1 but the price of x decreases from $9 to $4. calculate the substitution effect on x and y.
answer choices:
a. -12X; +2Y
b. +3X; +12Y
c. +5X; -0Y
d. +2X; -12Y
e. +3X; -12Y
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New Products Management
Authors: C Merle Crawford
12th Edition
1260512010, 9781260512014
