Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint

Question

03-03-2020
Business

contestada

Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint

Respuesta :

Otras preguntas

A healthy 60-year-old African-American woman regularly receives health care at her neighborhood clinic. She is due for a mammogram. At her first visit, her heal

Whats a general statement for Romeo and Juliet in terms of "fate"?

A teacher claims that the proportion of students expected to pass an exam is greater than 80%. To test this claim, the teacher administers the test to 200 rando

Tony buys 4kg of potatoes at £1.60 per kilogram and 2kg of onions at £1.80 per kilogram. She pays with a £20 note. How much change should she receive?

A uniform solid sphere with a mass of M = 390 grams and a radius R = 19.0 cm is rolling without slipping on a horizontal surface at a constant speed of 4.00 m/s

Luke has $9.00 to spend at the concession stand. He buys a hot dog for $1.50, and he wants to purchase some Sour Straws for $0.75 each. How many Sour Straws can

a total of 4500 people in the city bought take out pizza at least once during the week this was 20% of all the people who live in the city how many people live

Error Degrees of Freedom are calculated as n - p - 1 for multiple regression models. The p represents the number of coefficients (not including the intercept) i

A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $400000 with annual operating and maintenance

Hola, Marcela: ¿Recuerdas el complejo deportivo (sports complex) que está al lado del estadio? Voy todos los fines de semana porque puedo hacer muchas actividad

enyo enyo · Answer 1 · 2020-03-03T20:27:05+01:00

Answer:

1 unit of X must be sacrifised to gain a unit of Y, with satisfying Budget Constraint .

Explanation:

Budget Line shows the product combinations that a consumer can buy with given prices & money income (spending all) . Equation : P1X1 + P2X2 = M

Price ratio slope of the budget line i.e = P1/P2 : shows the amount of a good needed to be sacrifised to gain a unit of the other good , given prices & income.

So, Price Ratio : PX / PY = 2 / 2 = 1 in this case; implies 1 unit of Good X is needed to be sacrifised to gain a unit of good Y with given prices & income.