Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own money. Julian's demand function for good X and the demand function for good Y are given respectively by X₁ = 32800/(10Px + Py) and Y₁ = 3280/(10Px +Py). What is Julian's spending money "M"?

Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own money. Julian's demand function for good X and the demand function for good Y are given respectively by X₁ = 32800/(10Px + Py) and Y₁ = 3280/(10Px +Py). What is Julian's spending money "M"?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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