Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P, =$1. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X units of good Y. Then the marginal rate of substitution is equal to: MRS = 1.83. (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) Use absolute values. The consumer should consume to maximize utility. more Y and less X the same amount of X and Y more X and less Y

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the following utility function:
U= 100x0.50,0.50
A consumer faces prices of P, = $2 and P, =$1.
Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X and 11
units of good Y. Then the marginal rate of substitution is equal to:
MRS = 1.83. (Enter your response rounded to two decimal places. Do not forget to include the negative sign.)
Use absolute values.
The consumer should consume
to maximize utility.
more Y and less X
the same amount of X and Y
more X and less Y
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MacBook Air
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Transcribed Image Text:Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P, =$1. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X and 11 units of good Y. Then the marginal rate of substitution is equal to: MRS = 1.83. (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) Use absolute values. The consumer should consume to maximize utility. more Y and less X the same amount of X and Y more X and less Y O étv MacBook Air 80 esc F1 F2 F3 F4 F5 F6 F7 F8 # $ % & 1 2 7 Q W E T Y tab S D F G caps lock C V M ft control option command つ つ エ B N
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