Question
Suppose that Kam's MRS for guac (1 ) and burgers (2 ) is = 2/1. She has $100 to spend and 1 = 5 and
Suppose that Kam's MRS for guac (1 ) and burgers (2 ) is = 2/1".
She has $100 to spend and 1 = 5 and 2 = 20. a. What is the demand function for guac? b. What is the demand function for burgers? c. Graphically show the effect of an increase in income on the demand for guac. d. What is the optimal amount of guac and burgers?
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Macroeconomics Canada in the Global Environment
Authors: Michael Parkin, Robin Bade
8th edition
321778103, 978-0321808370, 321808371, 978-0321778109
