Economics Junk

Economics Junk 6.6 A) If a consumer has a certain income and at this level of income the consumer prefers to purchase 50 units of y and 0 units of X, if the toll of impregnable Y is $10, then the consumers income is $10*units of Y. Disposable income= $10*y =$10*50 =$ euchre. B) If the same consumer wished to purchase 40 units of X and 0 units of Y, the price of considerably X would be disposable income divided by the number of units to be purchased. coquet of good X= disposable income/units of X =$ergocalciferol/40 =$12.

5 C) The equation for the reckon line is calculat ed development the prices for all(prenominal) good and the disposable income. The disposable income is equal to the cost of good X multiplied by the aggregate of X purchased, summation the cost of good Y multiplied by the total of Y purchased. To find the equation of the reckon line, solve for Y. $500=$10Y+$12.5X $10Y=$500-$12.5X Y=$500/$50-$12.5/$10X Y=$50-$1.25X D) The consumer would choose the point where the budget line i...If you want to get a full essay, driven it on our website: OrderCustomPaper.com

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