Microsoft Word - Problem Set 2 Questions
1.Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
Microsoft Word - Problem Set 2 Questions
2.Sketch one indifference curve that has the following form: U(x, y) = 3min (x,y) + y.
3. True, false, or uncertain; explain your answer. If you know the slope of the budget constraint for two goods, you know the prices of the two goods.
Please explain and answer