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Nick insists on consuming 3 times as much of y as he consumes of x

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solution


Question

82. (a) Nick insists on consuming 3 times as much of y as he consumes of x (so he always has y = 3x). He will consume these goods in no other ratio. The price of x is 2 times the price of y. Nick has an endowment of 20 x?s and 75 y?s which he can trade at the going prices. He has no other source of income. What is Nick?s gross demand for x?

 

Paper#27991 | Written in 18-Jul-2015

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