What is optimal consumption bundle

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Reference no: EM13889076

Jimmy’s preferences can be represented by the following utility function U = 2x + y. WealsohavePx =3,Py =3andW=100.

A) What is Jimmy’s optimal consumption bundle?

B) Show on a graph what happens to Jimmy’s consumption bundle when he receives a cash transfer of $100.

C) Is good x a normal good or an inferior good?

D) Calculate Jimmy’s income elasticity of demand for good x.

Reference no: EM13889076

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