1. Suppose you consume two goods: x and y. Your marginal utility of x is 20 and your marginalutility of y is 24 at your utility-maximizing combination. The current price of x is $5.(a) What is the marginal rate of substitution at your utility-maximizing combination?(b) What is the price of y at your utility-maximizing combination?

Marginal rate of substitution = (Marginal utility of X / Marginal utility of Y) It tell about how…

Answered: (a) hat te of substit at max 1izing e…

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(a) hat te of substit at max 1izing e (b) What is the price of y at your utility-maximizing combination?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 1SQP

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