Suppose Eric has the utility over two goods X and Y as U(X, Y) = min{2X, 3Y) and the prices and income are px = 2, py= 2 and I = 100. Now, if the price of X marginally increases to px, what is the total effect of this price change on good X? O a. 3 O b. -3 O c. 9 O d. 0 O e. -9

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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: 2, Py
Suppose Eric has the utility over two goods X and Y as U(X, Y) = min{2X, 3Y} and the prices and income are px =
marginally increases to px, what is the total effect of this price change on good X?
a. 3
b. -3
c. 9
d. 0
e. -9
= 2 and I
=
100. Now, if the price of X
Transcribed Image Text:: 2, Py Suppose Eric has the utility over two goods X and Y as U(X, Y) = min{2X, 3Y} and the prices and income are px = marginally increases to px, what is the total effect of this price change on good X? a. 3 b. -3 c. 9 d. 0 e. -9 = 2 and I = 100. Now, if the price of X
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