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?.

Economics For Today
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ISBN:9781337613040
Author:Tucker
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Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
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2. Given the utility function U(x; y)=x²y³, and Px=3 while Py-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?.
Transcribed Image Text:2. Given the utility function U(x; y)=x²y³, and Px=3 while Py-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?.
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