Chp_8 - 3 Income = $240.00 Price of X = $2.00 Price of Y =...

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CHAPTER 8 EXERCISE  GOOD X GOOD Y Units MU MU/P Units MU 10 100 10 150 20 80 20 96 30 64 30 72 40 56 40 48 50 52 50 44 60 48 60 40 70 44 70 26 80 40 80 20 90 34 90 14 100 32 100 10 1) Income = $200.00         Price of X = $4.00    Price of Y = $2.00  Given the information above, what is Jane's utility maximizing combination of X and Y?  2) Income = $200.00         Price of X = $2.00     Price of Y = $2.00  Say the price of X falls to $2.00, what is Jane's new utility maximizing combination of X and Y
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Unformatted text preview: 3) Income = $240.00 Price of X = $2.00 Price of Y = $2.00 Say Jane's income increases to $240.00, what is the utility maximizing combination of X and Y 4) When the price of both goods is equal would Jane purchase more of one good over the oth information in the table to justify your answer. MU/P Y? Y? her? Use the...
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