please give me the answer 12 10 8 6 8 6 3 4 j a If the consumer\'s income is k b

Question

please give me the answer

12 10 8 6 8 6 3 4 j a If the consumer's income is k b If the consumer's income is $26 1. 7. Fill in the blanks. $20, the units of good Y. er's income is $20, the consumer will purchase Xand units of good and mer's income is $26, the consumer will purchase and units of good Y units of good Xand a. How much of one good a consumer must give up in the market to obtairn another unit of some other good is given by m. a n. b How much of one good a consumer is just willing to give up to obtain one more unit of another good is given by Chapter 10

Explanation / Answer

The questions in the first part are not clear. The question is incomplete.

Chapter 5:

a.Consumer's Income = Price of good Y * bundles of Y purchased when X = 0

= 20 * 30 = $600

Price of X = Income / Bundles of X purchased when Y = 0

= 600 / 30 = 20

b. The equation of budhet line is

Income = Price of X * X + Price of Y * Y

600 = 20 X + 20 Y

30 = X + Y

c. The consumer chooses the bundle where MRS = Price ratio

So, the consumption bundle is (15,15)

d. MRS = P x / P y = 20 / 20 = 1

e. At point A, MRS is greatert than the price ratio and at point B, MRS is less than the price ratio.

f. 10 units of X and 15 units of Y.

g. Price of Y = $20

Price of X = $ 30

h. New MRS = 30 / 20 = 1.5

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