11. Suppose an individual has a daily income of Rs. 1,500 and spends it to consume commodities X and Y. The price of X is Rs. 75 and the price of Y is Rs. 50. Write the equation for the budget constraint of this individual. b. How much is the marginal rate of substitution (MRS) at the consumer optimization?

Microeconomics A Contemporary Intro
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ISBN:9781285635101
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Chapter6: Consumer Choice And Demand
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HI. Suppose an individual has a daily income of Rs. 1,500 and spends it to consume
commodities X and Y. The price of X is Rs. 75 and the price of Y is Rs. 50.
a. Write the equation for the budget constraint of this individual.
b. How much is the marginal rate of substitution (MRS) at the consumer
optimization?
Transcribed Image Text:HI. Suppose an individual has a daily income of Rs. 1,500 and spends it to consume commodities X and Y. The price of X is Rs. 75 and the price of Y is Rs. 50. a. Write the equation for the budget constraint of this individual. b. How much is the marginal rate of substitution (MRS) at the consumer optimization?
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