2. If a consumer faces two goods x and y, and her utility function is given by U(x, y) = Cx- x,)15(y – yo)15, where x, and yo are positive constants. Please demonstrate the marginal rate of substitution between y and x (i.e. -dy/dx).
2. If a consumer faces two goods x and y, and her utility function is given by U(x, y) = Cx- x,)15(y – yo)15, where x, and yo are positive constants. Please demonstrate the marginal rate of substitution between y and x (i.e. -dy/dx).
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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Transcribed Image Text:2. If a consumer faces two goods x and y, and her utility function is given by
со
U(x, y) = (x - x,)1.5(y – yo)15,
where x, and y, are positive constants. Please demonstrate the marginal rate of substitution
between y and x (i.e. -dy/dx).
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