= 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

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