Assume X and Y are perfect complements. Esra consumes one unit of X with exactly 3 units of Y. If Esra has 16 liras and
Posted: Mon Apr 18, 2022 9:15 am
Assume X and Y are perfect complements. Esra consumes one unit
of X with exactly 3 units of Y.
If Esra has 16 liras and if price of X is 2 liras and price Y is 2
liras, what is her optimal consumption bundle?
Construct Esra’s demand function for good X. (Hint: You can either
keep income, her preferences and price of good Y as parameters, or
else you can assign “fixed numbers “to those such as: I= 16, Py=2
and her preference structure is :: she consumes 1 unit of good X
with exactly 3 units of good Y .
of X with exactly 3 units of Y.
If Esra has 16 liras and if price of X is 2 liras and price Y is 2
liras, what is her optimal consumption bundle?
Construct Esra’s demand function for good X. (Hint: You can either
keep income, her preferences and price of good Y as parameters, or
else you can assign “fixed numbers “to those such as: I= 16, Py=2
and her preference structure is :: she consumes 1 unit of good X
with exactly 3 units of good Y .