Pam is rich and at this high income level, her demand for good X is independent of income and given by X*=41.9-5 px/py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 1, find the total amount Pam would be willing to pay (i.e., Pam's willingness to pay) for 5 units of good X and enter it below.

Pam is rich and at this high income level, her demand for good X is independent of income and given by X*=41.9-5 px/py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 1, find the total amount Pam would be willing to pay (i.e., Pam's willingness to pay) for 5 units of good X and enter it below.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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