MGEB02H3 Study Guide - Midterm Guide: University Of Toronto Scarborough, Apple I, Composite Good
16 Oct 2018
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Show what must have happened to the demand and supply to lead to such an equilibrium. Demand shifts right, p & q increase: [6 points] in the following, the initial equilibrium is given. Assuming x is giffen, draw the new equilibrium. On the same graph show the income and the substitution effects. Page 2 of 2: [6 points] draw representative indifference curves for the followings, sandra has a strange habit and she insists on it; she likes to eat an apple and two bananas together. 1: adam does not care about orange juice or apple juice as long as he has juice. Page 3 of 3: [6 points] assume you have a fixed budget of . Further assume that you spend your entire budget. Both good x and good y cost each. You are spending all your money on x. At this bundle, your marginal utility of x is 10 while your marginal utility of y is 5.
