Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is given by U = 2 X 06y 04 If the per unit price of X is Birr 20 and per unit price of Y is %3D Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSSyy at the optimum ?

Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is given by U = 2 X 06y 04 If the per unit price of X is Birr 20 and per unit price of Y is %3D Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSSyy at the optimum ?

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 13PA

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