Homework Answers
U= 2X + 5Y
MUX = dU/dX = 2
MUY = dU/dY = 5
MRS is the ratio of marginal utility of X and marginal utility of Y
MRS = -MUX/MUY = -2/5
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i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph...
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.
c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
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i) Find the Marginal Rate of Substitution at the given bundle,
and ii) use a graph to indicate the given bundle,
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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.
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