HW chap 6-12

# Mhe c loudmc gr a w hillc omhmtpx todo pr intvie

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Unformatted text preview: the income effect on Y when the price of Y increases from \$1 to \$4? Instructions: Enter the absolute value. 3 What is Esther's compensating variation for the price change? Instructions: Enter your answer as a whole number. \$24 Worksheet Section: Dissecting the Effects of a Price Change Esther consumes goods X and Y, and her utility function is http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 2/5 1/22/2014 Assignme nt Pr int Vie w For this utility function, a. What is Esther's MRSXY? ­ Y/(X + 1) True or false? Her preferences satisfy the declining MRS property. true b. Suppose her daily income is \$20, the price of X is \$4 per unit, and the price of Y is \$1 per unit. What is her best choice? Instructions: Enter your answers as whole numbers. X = 2 Y = 12 What is Esther's utility when her daily income is \$20, the price of X is \$4 per unit, and the price of Y is \$1 per unit? Instructions: Enter your answer as a whole number. 36 What is the (own) price elasticity...
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