Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own money. Julian's demand function for good X and the demand function for good Y are given respectively by X₁ = 32800/(10Px + Py) and Y₁ = 3280/(10Px +Py). What is Julian's spending money "M"?
Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own money. Julian's demand function for good X and the demand function for good Y are given respectively by X₁ = 32800/(10Px + Py) and Y₁ = 3280/(10Px +Py). What is Julian's spending money "M"?
Chapter5: Income And Substitution Effects
Section: Chapter Questions
Problem 5.5P
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Transcribed Image Text:Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His
uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own
money.
Julian's demand function for good X and the demand function for good Y are given respectively by
XJ = 32800/(10Px + Py) and Y₁ = 3280/(10Px + Py).
What is Julian's spending money "M"?
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