Alter the market rate of substitution between goods

Assignment Help Business Economics

Reference no: EM13815971

A consumer has $600 to spend on goods X and Y. The market prices of these two goods are P_x = $30 and P_y = $10.

1. What is the market rate of substitution between goods X and Y?

2. Suppose that the consumer's income doubled. How does that alter the market rate of substitution between goods X and Y?

Reference no: EM13815971

Questions Cloud

Important for human services professionals : 1. From a client's perspective, why do you think it is important for human services professionals to consider cultural differences?

Need step by step details to come up with solution : At the current time (time 0) the firm has FCFE of $100 million. This FCFE is expected to grow 10% year for 3 years and then grow at a constant 1% in perpetuity. Using a cost of equity of 11%, compute the value of stock assuming 100 million shares out..

Complaint procedure for a disparate impact : the difference between a disparate impact and a disparate treatment claim; the complaint procedure for a disparate impact and a disparate treatment claim as it pertains to the EEOC

Midas case study : Read the "Midas" case study of your text and respond to the guided response below in a three- to four-page paper in accordance with APA guidelines as outlined in the Ashford Writing Center.. In this paper you must:

Alter the market rate of substitution between goods : A consumer has $600 to spend on goods X and Y. The market prices of these two goods are Px = $30 and Py = $10. What is the market rate of substitution between goods X and Y? Suppose that the consumer's income doubled. How does that alter the market r..

How does globalization affect the choices you face : Economies around the world are becoming increasingly globalized. How does globalization affect the choices you face in your economic decisions?

What is the return on portfolio : You have $30,000 in Company A and $35,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio?

General categories of physical evidence : What are the four general categories of physical evidence? Briefly explain the process of marking an item of evidence for identification purposes

What are threats to validity : What are threats to validity

User Account

All Pages