Fabian With a utility function of U-2XY, Fabian's MU, = 2Y and his MUy = 2X , where MU is marginal utility. Write an equation for Fabian's marginal rate of substitution (MRS). Suppose Fabian's income is $120 and Px - $6 and Py-$2, where Px is the price of X and Py is the price Y. Write an equation for Fabian's budget constraint. Vrite the equation that equates the slope of Fabian's budget constraint to the slope of Fabian's indiffere urve: Fabian is spending all of his income, how much X and how much Y will he choose? Use the equation ou wrote in part's b and e to answer this question. hat will Fabian's utility be with this combination of X and Y?
Fabian With a utility function of U-2XY, Fabian's MU, = 2Y and his MUy = 2X , where MU is marginal utility. Write an equation for Fabian's marginal rate of substitution (MRS). Suppose Fabian's income is $120 and Px - $6 and Py-$2, where Px is the price of X and Py is the price Y. Write an equation for Fabian's budget constraint. Vrite the equation that equates the slope of Fabian's budget constraint to the slope of Fabian's indiffere urve: Fabian is spending all of his income, how much X and how much Y will he choose? Use the equation ou wrote in part's b and e to answer this question. hat will Fabian's utility be with this combination of X and Y?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 12PAE
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