Given the following utility function: Upper U equals 100 Upper X Superscript 0.25 Baseline Upper Y Superscript
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Question:
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
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