2. Given the utility function U(x; y)=x²y³, and P-3 while P-2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the price of y doubles, what is the new level of consumption for both x and y?.
2. Given the utility function U(x; y)=x²y³, and P-3 while P-2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the price of y doubles, what is the new level of consumption for both x and y?.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 6P
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![2. Given the utility function U(x; y)=x²y³, and Px=3 while Py-2, with budget m=100. Measure the
MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the
price of y doubles, what is the new level of consumption for both x and y?.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c4f4340-feb5-4d1f-bca4-d482b5cbcfe3%2F9cf37f6e-29db-4a46-b0c4-39acc538583c%2Ff9mgf2c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Given the utility function U(x; y)=x²y³, and Px=3 while Py-2, with budget m=100. Measure the
MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the
price of y doubles, what is the new level of consumption for both x and y?.
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