N 4. Consider a consumer who consumes only two goods, X and Y. His utility function...

 

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N 4. Consider a consumer who consumes only two goods, X and Y. His utility function for X and Y is given by U(X,Y)= ln (X) + Y, where In represents the natural logarithm. a) Derive the consumer's MRS of X for Y, using calculus to calculate his marginal utility from X and his marginal utility from Y. phil b) If the price of X is $2, and the price of Y is $4, and the consumer's income spent on the two goods is $ 100, What is the equation of Josh's budget line? C) What are the optimal consumption choices, X* and Y* for this consumer? Show your work. N 4. Consider a consumer who consumes only two goods, X and Y. His utility function for X and Y is given by U(X,Y)= ln (X) + Y, where In represents the natural logarithm. a) Derive the consumer's MRS of X for Y, using calculus to calculate his marginal utility from X and his marginal utility from Y. phil b) If the price of X is $2, and the price of Y is $4, and the consumer's income spent on the two goods is $ 100, What is the equation of Josh's budget line? C) What are the optimal consumption choices, X* and Y* for this consumer? Show your work.

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ANSWER a Given Utility Function is UXYInX Y MRSMUXM... View the full answer