A consumer of two goods, good 1 and 2, has a utility function U (X1, X2)= X1 0,6. X2 0,4, where x, denotes units of good 1 and X2 units of good 2. The price of good 1 is 5 euros per unit, the price of good 2 is 3 euros per unit And the consumer's income is 150 euros. Suppose it only changes the price of good 1 / that the new price is P, "= 2. Then, Slutsky's rendering respect for good 1 is Choose one: A) 16.2 B) Not defined C) 17.2 D) 18.2

A consumer of two goods, good 1 and 2, has a utility function U (X1, X2)= X1 0,6. X2 0,4, where x, denotes units of good 1 and X2 units of good 2. The price of good 1 is 5 euros per unit, the price of good 2 is 3 euros per unit And the consumer's income is 150 euros. Suppose it only changes the price of good 1 / that the new price is P, "= 2. Then, Slutsky's rendering respect for good 1 is Choose one: A) 16.2 B) Not defined C) 17.2 D) 18.2

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 25SQ

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6) A consumer of two goods, good 1 and good 2 has a utility function u (X1, X2)= X1 0,6. X2 0,4, where x1 denotes units of good 1 and X2 units of good 2. The price of good 1 is 5 euros per unit, the price of good 2 is 3 euros per unit and the consumer's income is 150 euros. Suppose only change the price of good 1 And that the new price is p, = 2. Then the Slutsky substitution effect with respect to good 1 is Choose one: A) 8.8 B) 9.8 C) Not defined D) 7.8 E) 10.8
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