Kate's money income is $250, the price of X is $3, and the price of Y is $2. Given these prices and income, Kate buys 60 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Kate's MRS is 3. At bundle J, if Kate increases consumption of Y by 1 unit, how many units of X must she give up in order to satisfy her budget constraint?
A. 1
B. 3
C. 2/3
D. 3/2
Answer: C
You might also like to view...
In choosing between apartments in two different locations, the marginal commuting cost is given by:
A) the commuting cost from the apartment located closer to the destination. B) the sum of the commuting cost from each apartment to the destination. C) the commuting cost from the apartment located farther away from the destination. D) the difference between the commuting cost from two different apartments to the destination.
Find the tax multiplier if the MPC is 0.75
a. ?4. b. ?3. c. 0.33. d. 3. e. 4.
Nations such as Egypt and Turkey may have wide differences between GNP and GDP because both the countries
A. have a large portion of their GNP produced by multinational corporations. B. have a high level of imports and exports relative to GNP. C. have a large number of citizens working abroad. D. purchase large amounts of military wares from other countries.
The additional output that can be produced by adding one additional unit of a specific input is called marginal product.
Answer the following statement true (T) or false (F)