Homework answers / question archive / Dominic's preferences have the following associated indifference curve as depicted in diagram below Units of Y Units of X ? yo 5 Maior Paren imported From IE (1) Complete and conti Mariage Econo Storije a) Explain the relationship between good X and Y? [3 marks] b) Explain the nature of marginal rate of substitution between good X and Y

Dominic's preferences have the following associated indifference curve as depicted in diagram below Units of Y Units of X ? yo 5 Maior Paren imported From IE (1) Complete and conti Mariage Econo Storije a) Explain the relationship between good X and Y? [3 marks] b) Explain the nature of marginal rate of substitution between good X and Y

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Dominic's preferences have the following associated indifference curve as depicted in diagram below Units of Y Units of X ? yo
5 Maior Paren imported From IE (1) Complete and conti Mariage Econo Storije a) Explain the relationship between good X and Y? [3 marks] b) Explain the nature of marginal rate of substitution between good X and Y. [3 marks] c) Assume that Dominic is a utility maximizer. What determines Dominic's demand for good X? [4 Marks] d) Dominic has K4,000 to spend on fanta (Y) and scones(X). The prices of Y = K10 and X = K5 per unit. i. Write the equation for the budget constraint for Dominick. [3 marks] ii. Determine the rate of substitution between Y and X [3 marks] iii. Assume that X and Y are depicted by the preferences of question three (a). Determine which good between X and Y and the quantities that Dominic will [4 Marks] get [Total: 20 Marks] AUROIAVI