Economics Junk
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Title: Economics Junk

Essay Details:

Subject: Business
Author: Sharon B
Date: March 19, 2015
Level: University
Grade: A
Length: 6 / 1775

Essay text:

The disposable income is equal to the cost of good X multiplied by the amount of X purchased, plus the cost of good Y multiplied by the amount of Y purchased. To find the equation of the budget line, solve for Y. $500=$10Y+$12.5X $10Y=$500-$12.5X Y=$500/$50-$12.5/$10X Y=$50-$1.25X D) The consumer would choose the point where the budget line is tangent to the highest possible utility or indifference curve. This would be the utility function II. The lines are tangent at X=20 and Y=25. This combination maximizes consumption with available income. E) The marginal rate of substitution measures the number of units of Y a consumer will give up per additional level of X, holding the utility constant...

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