Question: Suppose Carloss utility for two goods is given as U(x 1 ,x 2 ) = min{3x 1 ;2x 2 } 1. What is the value

Suppose Carloss utility for two goods is given as U(x1,x2) = min{3x1;2x2}

1. What is the value of the marginal rate of substitution?

2. Write out his Marshallian demands for x1 and x2, as functions of P1, P2, and m.

3. Now, solve for these when P1 = 20, P2 = 15, and m = 200.

4. Is this an interior or corner solution?

5. Is the budget exhausted here? Yes/no

6. What is the value of utility when its maximized with your solution in b?

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