Ann's money income is $250, the price of X is $3, and the price of Y is $2. Given these prices and income, Ann buys 60 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J Ann's MRS is 2. Given these prices and income, what is Ann's equilibrium consumption of X?

A. X = 60
B. X < 60
C. X > 60
D. None of the statements is correct.

Answer: C

Economics

You might also like to view...

All of the following are flow variables EXCEPT

A) saving. B) capital goods. C) consumption. D) investment.

Economics

Which of the following is likely to be included in a country's Gross Domestic Product in a particular year?

A) An unsold inventory of automobiles produced in that year B) The total amount steel used in the production of automobiles in that year C) The total amount of flour used by bakeries to make bread in that year D) An unused stock of goods produced in the previous year

Economics