A consumer has 600 to spend on goods x and y the market, Ask an Expert

Economics

A consumer has $600 to spend on goods X and Y. The market prices of these two goods are P_x = $30 and P_y = $10.

1. What is the market rate of substitution between goods X and Y?

2. Suppose that the consumer's income doubled. How does that alter the market rate of substitution between goods X and Y?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91385896

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