Question: Sophie's utility function is U(x,y) = (x+2)(Y+3) If her marginal rate of substitution is -2 and she is consuming 12 units of good x, how

Sophie's utility function is U(x,y) = (x+2)(Y+3)

If her marginal rate of substitution is -2 and she is consuming 12 units of good x, how many units of good y must she be consuming?

A. 24 < y

B. 20 < y 24

C. 16 < y 20

D 12 < y 16

E. y 12

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!