Answer to Question #268428 in Microeconomics for Novi

Question

suppose your income is $3000 pizza cost $3 per box and juice cost $6 per box if your income increases from $3000 to $4000 show that what will happen if both pizza and juice are normal good

Answer 1

$n=\frac{4000\$}{3000\$}=1.33,$

pizza: $C_p=3\$n=4\$,$

juice: $C_j=6\$n=8\$.$