Suppose a consumer consumes two goods, x and y and has utility function U(x, y) = min{3x, 2y}. She has a budget of $100. The price of x is $35 and the price of y is $10. a. If x is on the horizontal axis and y is on the vertical axis. Please find the consumer's MRS. b. Find the consumers 's optimal choice of x and y
Suppose a consumer consumes two goods, x and y and has utility function U(x, y) = min{3x, 2y}. She has a budget of $100. The price of x is $35 and the price of y is $10. a. If x is on the horizontal axis and y is on the vertical axis. Please find the consumer's MRS. b. Find the consumers 's optimal choice of x and y
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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Suppose a consumer consumes two goods, x and y and has utility function U(x, y) = min{3x, 2y}. She has a budget of $100. The price of x is $35 and the price of y is $10.
a. If x is on the horizontal axis and y is on the vertical axis. Please find the consumer's MRS.
b. Find the consumers 's optimal choice of x and y..
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