Question
Suppose utility is given byU=x +y (wherex andy denote quantities), the prices of goodsx andy areP x =P y =1 , and incomeI=12 . The
Suppose utility is given byU=x
+y
(wherex
andy
denote quantities), the prices of goodsx
andy
areP
x
=P
y
=1
, and incomeI=12
.
The optimal bundle has what quantity ofx
?
unanswered
The optimal bundle has what quantity ofy
?
unanswered
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Lecture Exercise 6.5.1b
2 points possible (graded)
Goodx
undergoes a price shock, and nowP
x
=2
.
The new optimal bundle has what quantity ofx
?
unanswered
The new optimal bundle has what quantity ofy
?
unanswered
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
