Good X sells for $4, and good Y sells for $2. At your current level of consumption,

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Good X sells for $4, and good Y sells for $2. At your current level of consumption, the marginal rate of substitution between X and Y is 4.
a. Are you maximizing your utility?
b. If not, are you buying too much X or too much Y ? Explain.

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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Jan 13, 2016 02:30 AM

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Good X sells for $4, and good Y sells for $2. At your current level of consumption,

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a The price of good X is P X 4 and the price of good Y is P Y 2 At curren...View the full answer

Microeconomics

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