2. If a consumer faces two goods x and y, and her utility function is given byсоU(x, y) = (x - x,)1.5(y – yo)15,where x, and y, are positive constants. Please demonstrate the marginal rate of substitutionbetween y and x (i.e. -dy/dx).

Here we get the monotonic transformation of utility function. So our main utility function is or…

2. If a consumer faces two goods x and y, and her utility function is given by U(x, y) = Cx- x,)15(y – yo)15, where x, and yo are positive constants. Please demonstrate the marginal rate of substitution between y and x (i.e. -dy/dx).

2. If a consumer faces two goods x and y, and her utility function is given by U(x, y) = Cx- x,)15(y – yo)15, where x, and yo are positive constants. Please demonstrate the marginal rate of substitution between y and x (i.e. -dy/dx).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. If a consumer faces two goods x and y, and her utility function is given by
со
U(x, y) = (x - x,)1.5(y – yo)15,
where x, and y, are positive constants. Please demonstrate the marginal rate of substitution
between y and x (i.e. -dy/dx).

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