= Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the prices and income are p = 3, Py 5 and I = 50. Let s, and sy be the shares of income spent on good X and good Y, respectively, and let er, and ey, be the income elasticities of demand for goods X and Y, respectively. Then, Sex,1+Syey, is equal to (a) 2 (b) 1 CORRECT ANSWER (c) 0 (d) -1 (e) Not enough information
= Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the prices and income are p = 3, Py 5 and I = 50. Let s, and sy be the shares of income spent on good X and good Y, respectively, and let er, and ey, be the income elasticities of demand for goods X and Y, respectively. Then, Sex,1+Syey, is equal to (a) 2 (b) 1 CORRECT ANSWER (c) 0 (d) -1 (e) Not enough information
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 6SQP
Related questions
Question
![Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the
prices and income are p = 3, Py = 5 and I = 50. Let s, and sy be the shares of
income spent on good X and good Y, respectively, and let er, and ey, be the income
elasticities of demand for goods X and Y, respectively. Then, Szer,+Syey, is equal to
(a) 2
(b) 1 CORRECT ANSWER
(c) 0
(d) -1
(e) Not enough information](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F56d3a37b-e2c8-454f-897f-6fd76f53a599%2F4237c1dc-b80e-417f-9e67-24b0fae361a4%2Fcp421mi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the
prices and income are p = 3, Py = 5 and I = 50. Let s, and sy be the shares of
income spent on good X and good Y, respectively, and let er, and ey, be the income
elasticities of demand for goods X and Y, respectively. Then, Szer,+Syey, is equal to
(a) 2
(b) 1 CORRECT ANSWER
(c) 0
(d) -1
(e) Not enough information
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