Given the following utility function:

Upper U equals 100 Upper X Superscript 0.25 Baseline Upper Y Superscript 0.10U = 100X0.25Y0.10

and marginal rate of substitution:

MRS equals negative StartFraction 0.25 Upper Y Over 0.10 Upper X EndFractionMRS = −0.25Y0.10X

A consumer facing the following prices:

Px = $1010,

Py = $55

chooses to consume: 66

units of good X and 1313

units of good Y.Given this consumption bundle, the marginal rate of substitution is equal to minus−nothing

Answer rating: 100% (QA)

The consumers utility function can be rewritten as U 100X025Y010 The consumer... View the full answer