2. Given the utility function U(x; y)=x²y³, and P-3 while P-2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the price of y doubles, what is the new level of consumption for both x and y?.
2. Given the utility function U(x; y)=x²y³, and P-3 while P-2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the price of y doubles, what is the new level of consumption for both x and y?.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 10SQ
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