Question: Question-11 Suppose Alex's utility function for apple and orange is U ( a , o ) = 3 l n a + o The price

Question-11 Suppose Alex's utility function for apple and orange is U(a,o)=3lna+o The price of an apple is $ 5, and the price of an orange is $ 3. Alex has $ 150 to spend on these two goods.

- at the bundle(a,o)=(10,5) the Marginal rate of substitution MRS(a,o)=?

- Given prices, income, and utility function, the best affordable bundle for Alex isa=? and o=?

Question-12 The demand curve shows the relationship between the quantity demanded, Qd, and the price p. The supply curve tells us the relationship between the quantity supplied, Qs, and the price P. Let's assume that we have a demand curve:

Qd(p)=16040p

- What is the equilibrium price if Qs(p)=20 ?

- If the supply curveQs(p)=50+15p . What is the excess demand if the price of the market is 1.6?

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