Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

hbk Group Title

A consumer initially spends 60% of his income on food. The price of food rises by 20%. At the same time, the individual is compensated by income increase of 12%. Therefore individual must be worse off. True or false,explain

  • one year ago
  • one year ago

  • This Question is Open
  1. ANGELNAV Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    LET INCOME= 100 & PRICE OF FOOD=10 EXPENDITURE ON FOOD=60 which means UNITS OF FOOD=60/10=6 AFTER PRICE INCREASE N COMPENSATION, PRICE OF FOOD=12 COMPENSATED INCOME= 112 NOW,units of food= 112/12=9.33 THUS, INDVL WIL B BETTER OFF as he is able to get more units of food now

    • one year ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...


  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.