A consumer can consume two goods, A and B, and has the utility function U-15A1/281/2. The consumer's budget is $900, the price of good A is $15 per unit and the price of good B is $45 per unit. (Assume A is the horizontal axis good and B is the vertical axis good. Both goods are infinitely divisible, but round numerical answers to 2 decimal places as necessary) What is the consumer's marginal rate of substitution? What is the consumer's marginal rate of transformation? What is the formula for the consumer's budget constraint? What is the consumer's utility-maximizing bundle given the ubility function and budget constraint? A. b
A consumer can consume two goods, A and B, and has the utility function U-15A1/281/2. The consumer's budget is $900, the price of good A is $15 per unit and the price of good B is $45 per unit. (Assume A is the horizontal axis good and B is the vertical axis good. Both goods are infinitely divisible, but round numerical answers to 2 decimal places as necessary) What is the consumer's marginal rate of substitution? What is the consumer's marginal rate of transformation? What is the formula for the consumer's budget constraint? What is the consumer's utility-maximizing bundle given the ubility function and budget constraint? A. b
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.9P
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Transcribed Image Text:A consumer can consume two goods, A and B, and has the utility function U-15A1/281/2, The consumer's budget is $900,
the price of good A is $15 per unit and the price of good B is $45 per unit. (Assume A is the horizontal axis good and B is the
vertical axis good. Both goods are infinitely divisible, but round numerical answers to 2 decimal places as necessary)
What is the consumer's marginal rate of substitution?
What is the consumer's marginal rate of transformation?
What is the formula for the consumer's budget constraint?
What is the consumer's utility-maximizing bundle given the utility function and budget constraint?
A
B
H
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