Get premium membership and access questions with answers, video lessons as well as revision papers.

Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per...

      

Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer‟s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income in equal proportions on the two commodities, that is, at a ratio of 1:1 to maintain his level of satisfaction.
What is the effect of an increase in the consumers income from Sh. 12,000 to sh. 24,000 per
month?

  

Answers


Wilfred
inc1722019155.png
Wilfykil answered the question on February 7, 2019 at 09:55


Next: Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per...
Previous: Differentiate between inferior and giffen goods.

View More CPA Economics Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions