Question: A consumer’s preferences for X and Y are described by the utility function: U = X ^2/3 Y ^1/3 .

Price of X $8 and price of Y is $3, and her income is $150.

1. What is the equation for her income expansion path ?
   What is the equation for her Engel curve for X ?
2. How will her budget share spent on X change if her income changes?
   What is her income elasticity of demand for X ? And the same for Y?
   How does the budget share spent on Y change as income changes?
3. What is the equation for her demand curve for X ?
   How does her demand curve for X shift when the price of Y rises?
   
   Price: $2.99
   

   Solution: The downloadable solution consists of 2 pages
   Deliverable: Word Document
   
   
   

   ∴ Other downloads you may be interested in ∴

   • [Solution] Pat divides a $900 monthly income between the consumption
   • [Solution] Chris’s utility from present consumption (C P) and
   • (Solution Library) Are each of the following assertions TRUE, FALSE,
   • [All Steps] A firm has the following production function: Q =
   • [Steps Shown] A firm has a short-run production function defined
   • Return on Assets Calculator - MathCracker.com