Consider a consumer with the following utility function U(2,3)=20.8.0.2 Assume that the consumer faces a price of pr = 3 for x, Py = 1 for y, and a total income of I = 150. 1. What is the marginal rate of subsitution? 2. Find the optimal consumption bundle. Label it bundle A. 3. What are the optimal levels of A, YA, and U (A, YA)?

Consider a consumer with the following utility function U(2,3)=20.8.0.2 Assume that the consumer faces a price of pr = 3 for x, Py = 1 for y, and a total income of I = 150. 1. What is the marginal rate of subsitution? 2. Find the optimal consumption bundle. Label it bundle A. 3. What are the optimal levels of A, YA, and U (A, YA)?

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter7: Analytic Trigonometry

Section7.6: The Inverse Trigonometric Functions

Problem 94E

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