Exam 7: A: Slutsky Equation

Neville, in Problem 2, has a friend named Edmund. Edmund has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price. Edmund's income is $9,000 and he initially had to pay a price of $50 per bottle of claret. The price of claret rose to $60. The substitution effect of the price change

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $5 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

Neville, in Problem 2, has a friend named Oswald. Oswald has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price. Oswald's income is $5,500 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $70. The substitution effect of the price change

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $7 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

Suppose that Agatha in Problem 10 had $495 to spend on tickets for her trip. She needs to travel a total of 1,500 miles. Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.10 per mile. How many miles will she travel by second class?

Goods 1 and 2 are perfect complements, and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1. If a consumer has an income of $200 and if the price of good 2 changes from $4 to $5, while the price of good 1 stays at $1, then the income effect of the price change

Neville, in Problem 2, has a friend named Algernon. Algernon has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price. Algernon's income is $5,500 and he initially had to pay a price of $20 per bottle of claret. The price of claret rose to $50. The substitution effect of the price change

Suppose that Agatha in Problem 10 had $465 to spend on tickets for her trip. She needs to travel a total of 1,500 miles. Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.10 per mile. How many miles will she travel by second class?

In Problem 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $5 per unit and hollyhocks cost $6 per unit and if the price of delphiniums rises to $9 per unit,

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1 per unit, and the price of bananas $2 per unit. His income was $40 per day. If the price of apples increased to $1.50 and the price of bananas fell to $.75, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1 per unit, and the price of bananas $2 per unit. His income was $40 per day. If the price of apples increased to $1.25 and the price of bananas fell to $.25, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $6 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

Goods 1 and 2 are perfect complements, and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1. If a consumer has an income of $720 and if the price of good 2 changes from $8 to $9, while the price of good 1 stays at $1, then the income effect of the price change

Suppose that Agatha in Problem 10 had $270 to spend on tickets for her trip. She needs to travel a total of 1,500 miles. Suppose that the price of first-class tickets is $.30 per mile and the price of second-class tickets is $.10 per mile. How many miles will she travel by second class?

In Problem 1, Charlie's utility function is x_Ax_B. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $5 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

Suppose that Agatha in Problem 10 had $360 to spend on tickets for her trip. She needs to travel a total of 1,500 miles. Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.10 per mile. How many miles will she travel by second class?

Neville, in Problem 2, has a friend named Marmaduke. Marmaduke has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price. Marmaduke's income is $8,000 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $80. The substitution effect of the price change

In Problem 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $2 per unit and hollyhocks cost $3 per unit and if the price of delphiniums rises to $5 per unit,

In Problem 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $3 per unit and hollyhocks cost $4 per unit and if the price of delphiniums rises to $6 per unit,

Suppose that Agatha in Problem 10 had $440 to spend on tickets for her trip. She needs to travel a total of 1,500 miles. Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.20 per mile. How many miles will she travel by second class?