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QUESTION. Suppose Lou's demand for good X is given by XL = 20 - P/ 8 and Dora's demand for good X is given by XD = 80 -P
Posted: Wed Mar 09, 2022 8:35 am
by answerhappygod
- Question Suppose Lou S Demand For Good X Is Given By Xl 20 P 8 And Dora S Demand For Good X Is Given By Xd 80 P 1 (47.17 KiB) Viewed 49 times
QUESTION. Suppose Lou's demand for good X is given by XL = 20 - P/ 8 and Dora's demand for good X is given by XD = 80 -P/2 where x; denotes the quantity demanded by person i, i=L, D and P denotes the price of the good. Lou's income is 600,000 dollars and Dora's income is 900,000 dollars. Now suppose good X is not sold in stores. You have a total 34 units of good X and wish to divide it efficiently between Lou and Dora. How many units do you give to Lou? (Hint: Think of the "aggregate demand".) As for all such
questions, do not input ratios or symbols in the box below, just a number, as stated in the instructions. Answer: