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Question: suppose that jim uses his budget to purchase 100 units...

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Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he purchases 55 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 60 units of Good X and 105 units of Good Y Calculate the substitution effect Remember to include a negative sign (-) if the effect reduces the quantity) Answer
Suppose that a consumer had a utility function given by U-XY This consumer has a budget of $6. Fill in the value of this consumers demand function. X (For instance, if X = 4px, then X = 4 * (1/Px) and enter 4)
Suppose the market was made up of two demanders. Demander 1 has a demand function given by: q-10-5P Demander 2 has a demand function given by: 80-20P The horizontal summation of these two demand functions will, when graphed, have a kink (point where the slope changes) Determine the price associated with the kink in the total demand function. (Do not include a dollar sign in your response. Round to the nearest 2 decimal places if necessary) if necessary) Answer Check
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