Amy has $20 a week to spend on coffee and cake. The price of coffee is $4 a cup, and the price of cake is $2 a slice. Calculate Amy's real income in terms of cake. Calculate the relative price of cake in terms of coffee. Amy's real income in terms of cake is The relative price of cake in terms of coffee is
Amy has $20 a week to spend on coffee and cake. The price of coffee is $4 a cup, and the price of cake is $2 a slice. Calculate Amy's real income in terms of cake. Calculate the relative price of cake in terms of coffee. Amy's real income in terms of cake is The relative price of cake in terms of coffee is
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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
Transcribed Image Text:Amy has $20 a week to spend on coffee and cake. The price of coffee is $4 a cup, and the price of cake is $2 a slice.
Calculate Amy's real income in terms of cake. Calculate the relative price of cake in terms of coffee.
Amy's real income in terms of cake is
The relative price of cake in terms of coffee is
dollars
cup of coffee per slice
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