2. Lola consumes good x and y, and her marginal rate of substitution is 3/2, regardless of how many units of x and y that she consumes. Assume Lola has an income of $200 and that P,-$5. (a.) Find Lola's optimal consumption bundle when px = 6. (b.) Find Lola's demand for x as a function of p,, assuming the price can be any non- negative amount.

2. Lola consumes good x and y, and her marginal rate of substitution is 3/2, regardless of how many units of x and y that she consumes. Assume Lola has an income of $200 and that P,-$5. (a.) Find Lola's optimal consumption bundle when px = 6. (b.) Find Lola's demand for x as a function of p,, assuming the price can be any non- negative amount.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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