Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is given by U = 2 X 06y 04 If the per unit price of X is Birr 20 and per unit price of Y is %3D Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSSyy at the optimum ?

Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is given by U = 2 X 06y 04 If the per unit price of X is Birr 20 and per unit price of Y is %3D Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSSyy at the optimum ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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