Economics- Help Plz i'm horrible at this stuff?

Question

A consumer must spend all their Income on goods X and Y.
In each scenario indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is an inferior good and Good Y is a normal Good.

a.) Income doubles
b.) Income quadruples and all proces double
c.) Income and prices quadruple
d.) Income is halved and all prices double.
3 minutes ago - 3 days left to answer.

Answer 1

OK, let's assume that mostly poorer people would have to buy the cheaper good x and people with more money would want to buy as much of the normal good y. If you were flat broke and needed a new coat, you'd have to buy the cheapest you could afford. If you had a lot of money, you'd buy the best you could afford.

a) so if your income doubles, what will you do--spend more or spend less? Of course, you will spend on better goods.

With that, you should be able to figure out b and c.

d) wow--so the price for lunch doubled overnight. For some reason you only have one-half the money you did yesterday. Will you be able to afford to buy the good lunch, or will you have to buy the cheapest thing you can find? That's your answer.

PS I don't believe in doing someone's homework, but rather helping them to understand it better so they can do it themselves. :)

Answer 2

Macroeconomics

http://www.sparknotes.com/economics/

Macroeconomics

├ Measuring the Economy 1
├ Measuring the Economy 2
├ Money
├ Banking
├ Economic Growth
├ International Trade
├ Tax and Fiscal Policy
├ Policy Debates
├ Aggregate Demand
└ Aggregate Supply

Microeconomics

├ Labor Markets │

├ Labor Demand │
├ Labor Supply │
└ Review of Labor Markets
├ Elasticity

├ Supply & Demand │

├ Demand │
├ Supply │
├ Equilibrium │
└ Review of Supply and Demand
├ Income Distribution
└ Monopolies & Oligopolies

http://www.helsinki.fi/WebEc/framee.html

http://economics.about.com/cs/studentresources/a/macro_help.htm

http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTMACROECO/0,,menuPK:477883~pagePK:64168176~piPK:64168140~theSitePK:477872,00.html

Investing for Beginners

http://beginnersinvest.about.com/od/macroeconomics/Macroeconomics.htm