Five Minute Exercises > Price Change with Perfect Complements Preferences

Problem

Given:

A household regards X and Y as perfect complements
The household always chooses X=5*Y
Initially the price of X is $6 and the price of Y is $20
The household spends $300 in total

Determine:

The change in the household's consumption of X when the price of X rises to $8.

Site Index | Zoom | Admin
URL: https://wilcoxen.maxwell.insightworks.com/pages/3250.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 08/17/2016