The amount which from the transaction entered by the person who borrows money called the debtor or maker and the person who lends money called creditor or lender.

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A: Answer-

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A: Correct option is b).

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A: Compensated demand function: MRS = MUxMUy = 0.5x-0.52(0.5)y-0.5 = 1y0.52x0.5 equating MRS to price r...