Weekly income=$60   Burger= $12 each   Books= $6 each   Points A and B are utility maximizing choices.    Price of burgers go from $6 each to $12 each.   Part a) Draw the income and substitution effects on the graph.   Part b) Are books normal or inferior good?   Part c) Are burgers normal or inferior good?   Part d) Draw demand curve for burgers

05- Income and Substitution Effects Question 5

Vagal got a raise at work and now has more weekly income. Magali will now demand __________ "inferior" goods such as ___________. Fill in the blanks. Question 22 options: A) less; generic frozen pizza from the convenience store B) more; generic frozen pizza from the convenience store C) more; food from the deli at Whole Foods D) less; food from the deli at Whole Foods

Which of the following statements is TRUE regarding the relationship between Complimentary Goods? a An increase in the price of syrup will decrease demand for pancakes b An expected storm will decrease demand for umbrellas c A decrease in the price of chicken will increase demand for beef d A price increase in pancakes will decrease demand for pancakes

05- Income and Substitution Effects Question 4

If milk and Cheerios are such known to be complements the consumer consumes either one of this goods or the other Is it true or false?

Questions 6 (Demand). When the price of x1 is $8 and the price of x2 is $5, Jenny consumes 20 units of x1 and 10 units of x2. Suppose that when the price of xX2 increases to $7, Jenny consumes 25 units of x1. a) What type of goods are x1 and x2? b) How many units of x2 does Jenny consume after its price increases? Hint: Calculate her income with the first allocation of goods. Questions 7 (Slutsky Equation and Consumer Surplus). Robert's utility function for x and xa is: