Economic Questions//Help!!?
Can someone please help me with this economy questions:
This wil be the table
Choice Units Y Units X
A 10 2
B 6 4
C 4 6
D 2 12
1.Assume consuemr budget is $12, and the prices of X and Y are $1 and $1.50,What combinations of X and Y will the consumer purchase?
2. What is the value of the MRS and the slope (Px/Py) at consumer equilibrium?
Answer:
1. Px X + Py Y = Budget -->1X+1.5Y=12
so the answer is B, 6 of X and 4 of Y.
2. Px/Py=0.667 MRS=Y/X=4/6=0.667
37
...
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This wil be the table
Choice Units Y Units X
A 10 2
B 6 4
C 4 6
D 2 12
1.Assume consuemr budget is $12, and the prices of X and Y are $1 and $1.50,What combinations of X and Y will the consumer purchase?
2. What is the value of the MRS and the slope (Px/Py) at consumer equilibrium?
Answer:
1. Px X + Py Y = Budget -->1X+1.5Y=12
so the answer is B, 6 of X and 4 of Y.
2. Px/Py=0.667 MRS=Y/X=4/6=0.667
37
...
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