ECO100Y5 Lecture Notes - Lecture 6: Costco, Indifference Curve, Substitute Good
257 views3 pages
sophiapham192 and 37296 others unlocked
53
ECO100Y5 Full Course Notes
Verified Note
53 documents
Document Summary
Income is m = 4, px = 4, py = 2. What is the most you would pay to join costco. = x , 1 = y, haic: fee = m cost b, U = xy , mrs(slope) = y/x, B: xy=1/2: zy = x} y=1/2 x=1 cost = : less than , is the correct answer, , , more than , utility is u = x + y. Indifference curves are linear with mrs = 1. Income is m=6, px = 3, py = 2. Mrs = ocost: 1 = 3/2, x = 6/2, y = 6/3. Px:ocost 1/2: less than , , = the answer, means youll be spending all your money on good x, cost : x =3, px =1, , more than , utility is u=x^2 + y^2. Income is m=6, px = 6, py=3/ crackco offers members a discounted px=1, but charges a membership fee.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers