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= 2and I= 100. Now, if the price of X marginally increases to p', what is the total effect of this price change on good X?О а. 9O b. -3O c. -9d. 3e. 0

Utility maximization problem: With the given prices and the income, a consumer chooses his…

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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3 Gabriel the consumer, has preferences over goods x and y that are perfect substitutes, where utility is u(x,y) = x+y. He has an income of $152. The price of y is $12. If the price of x falls from $8 to $2, then Gabriel's, optimal choice for good x should rise by units. O 51 O53 55 O 57 --
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