The last set of questions are based on the following equation: Y = 0.5 + 1.2 X + 0.75 Z + 0.25 X Z. > If Z = 1, how much does Y change when you change X by 1? > If X = 2, how does Y change when you change Z by 1?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.6P
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The last set of questions are based on the following equation: Y = 0.5 + 1.2 X + 0.75 Z + 0.25 X Z.

> If Z = 1, how much does Y change when you change X by 1?

> If X = 2, how does Y change when you change Z by 1?

 

 

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