At the utility max point the rate at which a consumer is willing to trade C0 for C1 is equal to 1 plus the interest rate (MRS = 1+r). Suppose U(C0,C1)=lnC0+lnC1, MRS=1+r, and C1=(1+r)C0. If the consumer has income of $100 and saves $60 at 10%, what are C0 and C1? options: $50, $60 $40, $66 $50, $52.50 $40, $60

At the utility max point the rate at which a consumer is willing to trade C0 for C1 is equal to 1 plus the interest rate (MRS = 1+r). Suppose U(C0,C1)=lnC0+lnC1, MRS=1+r, and C1=(1+r)C0. If the consumer has income of $100 and saves $60 at 10%, what are C0 and C1? options: $50, $60 $40, $66 $50, $52.50 $40, $60

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 16E

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