Microeconomics Slutsky Equation

Sun 4 Dec, 2016 04:09 pm
Guys, help me please to solve this problem. It was on my microeconomics exam and I failed it I think. Can you please draw the graph?

In 1989, Bruce spent his income on two goods x and y. Between 1989 and 1990, the price of
good x rose by 8 per cent and the price of good y rose by 8 per cent. In 1990, Bruce bought the
same amount of x as he bought in 1989, but he bought more of good y than he had bought in 1989.
From these facts, we conclude that:
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cicerone imposter
Sat 17 Dec, 2016 10:16 pm
All economic activity is based on supply and demand. You knew that.
If one product remained at the same price, and but second product had a high demand sentiment for the future, it would explain the price difference.
It could have been based on the limits on productivity, or on higher demand - or both.
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