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Pie
3 years ago
13

Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he pur

chases 70 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 80 units of Good X and 105 units of Good Y.
Required:
Calculate the income effect
Business
1 answer:
Ronch [10]3 years ago
8 0

Answer:

the income effect is -10

Explanation:

The computation of the income effect is given below:

The income effect is

= final demand - compensated demand

= 70 - 80

= -10

hence, the income effect is -10

We applied the above formula to determined the income effect

hence, the same is to be considered

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The correct question should be:

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Answer: True

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Answer:

See explanation section

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3 years ago
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aleksandrvk [35]

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<u />

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An order taker in sales is a person who responds to client queries (also known as orders) but does not actively pursue strategies that would boost sales, such as identifying new prospects or upselling to current clients.

To know more about retail order takers: brainly.com/question/20534024

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3 years ago
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