Consumption and income, Suppose you consume nothing but

Consumption and income

Assignment Help Business Economics

Reference no: EM138169

Q. Suppose you consume nothing but goods X and Y. We have two years? of data regarding your consumption and income:
Year 1:

I = $10 per week; PX = $1 per unit; PY = $1 per unit.

Your consumption: X = 6 units; Y = 4 units.

Year 2:

I = $20 per week; PX = $2.50 per unit; PY = $1.25 per unit.

(a) In which year are you happier? Show your result on a graph using indifference curves.

(b) In which year do you consume more Y? This should be obvious from your graph in (a), assuming your graph is correct.

Reference no: EM138169

Questions Cloud

Hybrid gasoline-electric vehicles : For each of the determinants of demand in Equation identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles.

Aerospace division of general aeronautics : The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.

Estimated bootstrap standard error of the median : What is the approximate estimated bootstrap standard error of the median, What is the approximate bias of the median estimated from bootstrapping - What is the bootstrap t confidence interval for the median

Incentives for single parents : A state government wants to provide incentives for single parents to enter the labor market and become engaged.

Consumption and income : Suppose you consume nothing but goods X and Y. We have two years.

Technically efficient in production : Specialty Steel has carefully measured production in its new plant to determine whether it is technically efficient in production.

Valid description of the bootstrapping method : In which of the following situations is bootstrapping (and other resampling methods) often used and Which of the following is a valid description of the bootstrapping method.

Bank compounds interest : If you want to make four equal payments on each January 1 from 2013 through 2016 to accumulate the $1,000, how large must each payment be.

Advantage of the permutation test : An advantage of the permutation test over the t test for a difference in means, can Permutation tests be used for tests when we believe the two populations differ under the null hypothesis.

User Account

All Pages