Question: How do I know this complements is perfect complements? Why mrs is 0? Explain 1. (18 points) For each of the following situations, i) Find

How do I know this complements is perfect complements? Why mrs is 0? Explain

How do I know this complements is perfect complements? Why mrs is

1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X on the horizontal axis, and the amount of good Y on the vertical axis. Perfect amplewant a) The consumers utility function is given by U(X, Y) = MIN(2X, 5Y), and the given bundle is X = 4 and Y = 1. 1 MRS - 0 Perfect complements home no MRS. ii) Draw your graph in this space: U ( x , X ) = MIN ( 27 . 54 ) Given Bustle : = 4 Y= 1 14 + 5 V ( 4 . 1 ) = MIN ( 2 . 4 . 5.1) +5 = MIN(8 , 5) Case 1 Case 2 2% =5 27 X23 271 7/ 5 7 717/ 3. and and 5 X 5Y- 5 7 Y=1

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