Let X; denote the amount of good X demanded by person i given her income is M; and the price of good X is Px. Sofia's demand function for good X is given by XS =0.14 Ms / Px. Tanya's demand function for good X is given by X₁ = 0.79 Mt / Px. Zara's demand function for good X is given by X₂ =0.32 M₂ / Px. The portion of income Tanya spends on good X is equal to ...

Let X; denote the amount of good X demanded by person i given her income is M; and the price of good X is Px. Sofia's demand function for good X is given by XS =0.14 Ms / Px. Tanya's demand function for good X is given by X₁ = 0.79 Mt / Px. Zara's demand function for good X is given by X₂ =0.32 M₂ / Px. The portion of income Tanya spends on good X is equal to ...

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.5P

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