4 3x 3) A) Good x is normal for all income levels B) Good x is...

 

Transcribed Image Text:

4 3x 3) A) Good x is normal for all income levels B) Good x is normal for some income levels but turns inferior for higher income levels C) Good x is inferior for all income levels D) Good x is a substitute for income The above equation is an Engel curve equation for Good x. What is true about Good x? 4) U = x0.7y0.3 5x+6y 100 a) (4 points) draw the budget constraint. Be sure to calculate the values of the x-intercept, y-intercep and slope. b) (8 points) calculate the consumer's optimal bundle c) (1 point) add an indifference curve and the optimal bundle to your budget constraint graph d) (1 point) calculate the utility at the optimal bundle 4 3x 3) A) Good x is normal for all income levels B) Good x is normal for some income levels but turns inferior for higher income levels C) Good x is inferior for all income levels D) Good x is a substitute for income The above equation is an Engel curve equation for Good x. What is true about Good x? 4) U = x0.7y0.3 5x+6y 100 a) (4 points) draw the budget constraint. Be sure to calculate the values of the x-intercept, y-intercep and slope. b) (8 points) calculate the consumer's optimal bundle c) (1 point) add an indifference curve and the optimal bundle to your budget constraint graph d) (1 point) calculate the utility at the optimal bundle

Answer rating: 100% (QA)

3 4 dr 4 32 Now income els Akiy f demand Em dx substiduting and we qut Em 4 3IF 4 3I2 ... View the full answer