Exam 7: A: Slutsky Equation

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 $420 and if the price of good 2 changes from $6 to $7, while the price of good 1 stays at $1, then the income effect of the price change

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 $1.75 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 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $9 per unit,

In Problem 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $7 per unit,

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 $300 and if the price of good 2 changes from $5 to $6, while the price of good 1 stays at $1, then the income effect of the price change

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 $2.25 and the price of bananas fell to $1.75, 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, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $4 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 Colin. Colin has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price. Colin's income is $7,500 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

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 $120 and if the price of good 2 changes from $3 to $4, while the price of good 1 stays at $1, then the income effect of the price change

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 $1, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of