0
   

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:
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Question • Score: 0 • Views: 2,552 • Replies: 1
Topic Closed
No top replies

 
cicerone imposter
 
  1  
Sat 17 Dec, 2016 10:16 pm
@Grekplay,
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.
0 Replies
 
 

Related Topics

Where is the US economy headed? - Discussion by au1929
The States Need Help - Discussion by Robert Gentel
Fiscal Cliff - Question by JPB
Let GM go Bankrupt - Discussion by Woiyo9
Sovereign debt - Question by JohnJD
 
  1. Forums
  2. » Microeconomics Slutsky Equation
Copyright © 2024 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.12 seconds on 12/21/2024 at 10:17:01