Justin's demand for good 1 is given by the formula: x1d(p1,p2,I)=2⋅I/4⋅p1+6⋅p2, Suppose... p1=$7/unit p2=$7/unit and I=$266 By how much will Justin's consumption of good 1 change if all prices AND his income were to double? (When all prices and income increase by the same percent, as is the case here, this is called "pure inflation"). (Note: The numbers may change between questions, so read carefully) (Note: The answer may not be a whole number, so round to the nearest hundredth)
Justin's demand for good 1 is given by the formula: x1d(p1,p2,I)=2⋅I/4⋅p1+6⋅p2, Suppose... p1=$7/unit p2=$7/unit and I=$266 By how much will Justin's consumption of good 1 change if all prices AND his income were to double? (When all prices and income increase by the same percent, as is the case here, this is called "pure inflation"). (Note: The numbers may change between questions, so read carefully) (Note: The answer may not be a whole number, so round to the nearest hundredth)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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100%
4. Justin's
p1=$7/unit
p2=$7/unit
and
I=$266
By how much will Justin's consumption of good 1 change if all prices AND his income were to double? (When all prices and income increase by the same percent, as is the case here, this is called "pure inflation").
(Note: The numbers may change between questions, so read carefully)
(Note: The answer may not be a whole number, so round to the nearest hundredth)
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