Suppose you find thatMU1(X1Xx2)=2x2 and MU₂(x1+x₂)=2x1. What is the rate at which the consumer iswilling to trade good 2 for good 1 at bundle (2,4)? (Note: enter a positive number, i.e. enter the quantity of good 2 that theconsumer is willing to give up for an additional-marginal-unit of good 1.)Question 20Suppose you find that the expressions of the marginal utilities for a consumer are given by MU1 (1,2)= 2 andMU₂ (1,2)= 7. Then you can conclude that:This consumer has Cobb-Douglas tastesFor this consumer good 1 and good 2 are perfect complementsFor this consumer good 1 and good 2 are perfect substitutesNone of the aboveQuestion 21Suppose a consumer is always willing to give up 5 units of good 2 for an additional unit of good 1. For this consumer:Good 1 and good 2 are perfect complementsGood 1 and good 2 are perfect substitutesGood 1 and good 2 are both essential goodsNone of the above

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Suppose you find that MU1(x1+x₂)=2x2 and MU₂(x1+x₂)=2x1. What is the rate at which the consumer is willing to trade good 2 for good 1 at bundle (2,4)? (Note: enter a positive number, i.e. enter the quantity of good 2 that the consumer is willing to give up for an additional-marginal-unit of good 1.)

Suppose you find that MU1(x1+x₂)=2x2 and MU₂(x1+x₂)=2x1. What is the rate at which the consumer is willing to trade good 2 for good 1 at bundle (2,4)? (Note: enter a positive number, i.e. enter the quantity of good 2 that the consumer is willing to give up for an additional-marginal-unit of good 1.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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