Harvey's Net Demands for Goods 1 and 2 Are (2

question 42

Essay

Harvey's net demands for goods 1 and 2 are (2, -3) and his endowment is (6, 5).
a. What are his gross demands?
b. Draw a diagram illustrating his budget line, his endowment, and his consumption. (Put good 1 on the horizontal axis.)
c. Draw a dotted line to show what his budget line would be if the price of good 1 doubled and the price of good 2 stayed the same.

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Definitions:

Endoscopic Retrograde Cholangiopancreatography

A diagnostic and therapeutic procedure that combines endoscopy and fluoroscopy to examine and treat problems in the bile and pancreatic ducts.

Esophagus

The muscular tube connecting the throat (pharynx) to the stomach, responsible for moving swallowed food and liquids to the stomach through peristaltic movements.

Bronchoscopy

A procedure that allows doctors to look at the airway through a thin viewing instrument called a bronchoscope.

Laryngospasm

A sudden and involuntary contraction of the vocal cords that obstructs breathing and can cause distress.