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.

a. What is Nick’s gross demand for x? Show ALL calculations

b. What is Nick’s net demand for x? Show ALL calculations

Answer rating: 100% (QA)

Nicks Demand for Goods X and Y a Gross Demand for X Calculate Nicks total consumption of Y Since y 3... View the full answer