Harry consumes 2 goods, X and Y and he spends N$60 per month. The price of good X is N$4 and the price of good Y is N$10. Harry's utility function is U(X, Y) = XY. ) What is Harry's marginal rate of substitution? (5) (ii) What is the expression for Harry's budget constraint? (3) (iii) What is the slope of Harry's budget constraint? (2)
Harry consumes 2 goods, X and Y and he spends N$60 per month. The price of good X is N$4 and the price of good Y is N$10. Harry's utility function is U(X, Y) = XY. ) What is Harry's marginal rate of substitution? (5) (ii) What is the expression for Harry's budget constraint? (3) (iii) What is the slope of Harry's budget constraint? (2)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1PA
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