Jackie's net demands for x and y are (6, -6) and her gross demands are (15, 15). What is her initial endowment of x?

Question

Quizplus · Accepted Answer

We can use the formula for net demand: 
Net demand = Gross demand - Initial endowment

Therefore, we have:

6 = 15 - x  (for good x)
-6 = 15 - y  (for good y)

Solving for x and y, we get: 
x = 9 
y = 21

Now, we need to check if these values satisfy the gross demands: 
For good x, gross demand is 15, which is greater than the initial endowment of 9. 
For good y, gross demand is 15, which is less than the initial endowment of 21.

Therefore, Jackie's initial endowment of x is 9. 
The answer is D.

Jackie's Net Demands for X and Y Are (6, -6)