Nick Insists on Consuming 3 Times as Much of Y

question 66

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:

Assumption

A belief or statement taken to be true without proof, often forming the basis for further reasoning or behavior.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Social Psychology

The exploration of how the real, perceived, or suggested presence of others affects individuals' mental states, emotions, and actions.

Social Anthropology

The branch of anthropology that studies how contemporary human societies and cultures operate and organize themselves.