Exam 7: Slutsky Equation-Part B

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B$ -refer to scenario above, 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

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,

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B$ -refer to scenario above, 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

Suppose that Agatha 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?

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B$ -refer to scenario above, 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

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

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B$ -refer to scenario above,, 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

Neville, 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

Neville, 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

Suppose that Agatha 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?