Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundie J, Mitchell's MRS Is 2. At bundle J. If Mitchelincreases consumption of Y by 1 unit, how many units of X can he give up and still reach the same level of utility?Multiple Choice0.5

Given: Money income=$150 Price of X=$2 Price of Y=$2

Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundie J, Mitchel's MRS is 2. At bundle J. If Mitchell increases consumption of Y by 1 unit, how many units of X can he give up and stil reach the same level of utility? Multiple Choice 0.5

Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundie J, Mitchel's MRS is 2. At bundle J. If Mitchell increases consumption of Y by 1 unit, how many units of X can he give up and stil reach the same level of utility? Multiple Choice 0.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Julio who consumes two goods Food (F) and clothing (C) has a utility function given by U(F,C)= sqrt(F)C. The price of food is $3 and the price of clothing is $5 and Julio's weekly budget for food and clothing is $100. a. What is Julio's MRSFe (marginal rate of substiution of food for clothing) when utility is maximized? Explain. b. If Julio is at point where MRSFC= 1, where is that point relative to the utility maximzing bundle (show this in a diagram)? c. Can Julio change his bundle so as to increase his satisfaction and if so in what way? Explain fully Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.