Question #102586

Given utility function U= X0.5Y0.5 where Px= 12 Birr, Bir, Py=4 Birr and the income of

the consumer is, M= 240 Birr.

A. Find the utility maximizing combinations of X and Y.

D. Calculate marginal rate of substitution of X for Y (MRSX.Y) at equilibrium and inierpiet

your result.

the consumer is, M= 240 Birr.

A. Find the utility maximizing combinations of X and Y.

D. Calculate marginal rate of substitution of X for Y (MRSX.Y) at equilibrium and inierpiet

your result.

Expert's answer

Solution:

A)

"{\\frac{MU_x}{p_x}}=\\frac {MU_y}{p_y}"

"x \\times p_x+ y \\times p_y=M"

"12 \\times x+4 \\times y=240"

"x=10, y=30."

D)

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Assignment Expert17.02.20, 15:50Dear visitor, please use panel for submitting new questions

Jira Desta15.02.20, 10:57When price of tea in local café rises from Br. 10 to 15 per cup, demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices. determine cross price elacticity and what kind of relation exists between the twoo goods?

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sehen tebebu14.02.20, 12:03thank you so much and God bless you more

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