This quiz works through the utility maximization problem for Martina. Let's assume Martina's preferences are given...
This quiz works through the utility maximization problem for Martina. Let's assume Martina's preferences are given by U(X,Y) = X1/3Y2/3 and her income is equal to $500. Prices for goods X and Y are equal to PX = $4 and PY = $2.
A) What is the value of Martina's marginal rate of substitution (MRS) at (X, Y) = (2, 20)?
B) What is the |slope| of Martina's budget constraint? (Enter an integer)
C) If Martina purchased only good X, how much good X could she
buy?
(Enter an integer)
D) What is the utility maximizing levels of X and Y that Martina will consumer?
X* = and Y*
=
(You must enter numbers rounded exactly to *one* decimal
point.)
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This quiz works through the utility maximization problem for
Martina. Let's assume Martina's preferences are given...
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