Nick Insists on Consuming 3 Times as Much of Y

question 27

Multiple Choice

Nick insists on consuming 3 times as much of y as he consumes of x (so he always has y = 3x) . He will consume these goods in no other ratio. The price of x is 2 times the price of y. Nick has an endowment of 20 x's and 75 y's which he can trade at the going prices. He has no other source of income. What is Nick's gross demand for x?

• A) 21
• B) 115
• C) 23
• D) 95
• E) We can't determine the answer without knowing the price of x.

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Definitions:

Z-Statistic

A statistical measure that indicates how many standard deviations an element is from the mean of a distribution.

Rejection Region

The range of values for which the null hypothesis is rejected in hypothesis testing, indicating statistical significance.

Significance Level

A statistical term that determines the threshold at which a null hypothesis is rejected.

Wilcoxon Signed-Rank Test

A statistical test used for comparing two related samples to determine if their population means rank differ.