## Nick insists on consuming 3 times as much of y as he consumes of x (so…

Nick insists on consuming 3 times as much of y as he consumes of

x (so he always has y = 3x). He will consume these goods in no

other ratio. The price of x is 2 times the price of y. Nick has an

endowment of 20 x’s and 75 y’s which he can trade at the going

prices. He has no other source of income.

a. What is Nick’s gross demand for x? Show ALL calculations

b. What is Nick’s net demand for x? Show ALL calculations

PLEASE SHOW ALL WORK, NO EXCEL, THANK YOU!