Given the following utility function: and marginal utilities: A consumer facing the following prices: chooses to consume Assume that graphically good X is on the horizontal axis and good Y is on the Given this consumption bundle, the marginal rate of substitution is equal to - Given this value, the consumer should consume U = 2X + 2Y MU, -2, MU, = 2 P, = $2, P, -5 15 units of good X and 19 units of good Y. vertical axis. (Round your answer to two decimal places. Note that the minus sign is already included.). in order to maximize his/her utility.

Given the following utility function: and marginal utilities: A consumer facing the following prices: chooses to consume Assume that graphically good X is on the horizontal axis and good Y is on the Given this consumption bundle, the marginal rate of substitution is equal to - Given this value, the consumer should consume U = 2X + 2Y MU, -2, MU, = 2 P, = $2, P, -5 15 units of good X and 19 units of good Y. vertical axis. (Round your answer to two decimal places. Note that the minus sign is already included.). in order to maximize his/her utility.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Given the following utility function:
and marginal utilities:
A consumer facing the following prices:
chooses to consume:
U = 2X + 2Y
Assume that graphically good X is on the horizontal axis and good Y is on the vertical axis.
Given this consumption bundle, the marginal rate of substitution is equal to -
Given this value, the consumer should consume
MU, = 2, MU, = 2
P, = $2, P, =5
15 units of good X and 19 units of good Y.
(Round your answer to two decimal places. Note that the minus sign is already included).
in order to maximize his/her utility.

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