macroeconomic theory

4. If an individual's utility function for coffee (x) and cream (y) is given by U(x, y) = min (x, 5y), write the demand function for coffee .

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asked by jane
  1. 7. Assume x and y are the only two goods a person consumes. If after a rise in pX the quantity demanded of y increases. Evaluate the following as true or false and explain. Support your explanation with a graph.

    The income effect dominates the substitution effect for good y.

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    posted by jane

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