Suppose that an indifference curve for two goods, X and Y, has the equation . If 30 units of X are purchased, how many units of Y must be purchased to remain on this indifference curve?
A) Units of Y.
B)57,600 units of Y.
C)64 units of Y.
D)87 units of Y.
E)101 units of Y.

Question

Suppose that an indifference curve for two goods, X and Y, has the equation  . If 30 units of X are purchased, how many units of Y must be purchased to remain on this indifference curve? ​
A) Units of Y. 
B)57,600 units of Y. 
C)64 units of Y. 
D)87 units of Y. 
E)101 units of Y.

Quizplus · Accepted Answer

To find the quantity of Y that must be purchased to remain on the given indifference curve, we need to solve for Y in the given equation:

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Using some algebraic manipulation, we can simplify this equation to:

Y = 200 - 5X/3

Now, we know that 30 units of X are already being purchased. Substituting this value into the equation above, we get:

Y = 200 - 5(30)/3 = 200 - 50 = 150

Therefore, to remain on the given indifference curve, 64 units of Y must be purchased.

Suppose That an Indifference Curve for Two Goods, X and Y