Q 17

Suppose a consumer is initially endowed with a positive amount of two goods, sells some of one to get more of the other, and has no other sources of income. If the price of one good falls, his new budget line is everywhere above his old budget line.

Q 18

Marsha Mellow is very flexible. She consumes x and y. She says, "Give me x or give me y, I don't care. I can't tell the difference between them." She is currently endowed with 14 units of x and 3 units of y. The price of x is 3 times the price of y. Marsha can trade x and y at the going prices but has no other source of income. How many units of y will Marsha consume?
A) 48
B) 17
C) 45
D) 3
E) 23

Q 19

Marsha Mellow is very flexible. She consumes x and y. She says, "Give me x or give me y, I don't care. I can't tell the difference between them." She is currently endowed with 8 units of x and 17 units of y. The price of x is 3 times the price of y. Marsha can trade x and y at the going prices but has no other source of income. How many units of y will Marsha consume?
A) 17
B) 44
C) 25
D) 41
E) 21