1)

Two individuals, Scott and Gavyn, consume two goods, X and Y. The utility functions for the two individuals are given as:

Gavyn's utility function:UG= 30X0.25Y0.75

Scott's utility function: US= 50X0.5Y0.5

Gavyn is currently consuming 5 units of X and 10 units of Y. Scott is currently consuming 12 units of X and 8 units of Y. The current prices of X and Y are $10 and $15, respectively

Determine the marginal rate of substitution forGavyn

2)

Two individuals, Scott and Gavyn, consume two goods, X and Y. The utility functions for the two individuals are given as:

Gavyn's utility function:UG= 30X0.25Y0.75

Scott's utility function: US= 50X0.5Y0.5

Gavyn is currently consuming 5 units of X and 10 units of Y. Scott is currently consuming 12 units of X and 8 units of Y. The current prices of X and Y are $10 and $15, respectively

Determine the marginal rate of substitution forScott

3)

Two individuals, Scott and Gavyn, consume two goods, X and Y. The utility functions for the two individuals are given as:

Gavyn's utility function:UG= 30X0.25Y0.75

Scott's utility function: US= 50X0.5Y0.5

Gavyn is currently consuming 5 units of X and 10 units of Y. Scott is currently consuming 12 units of X and 8 units of Y. The current prices of X and Y are $10 and $15, respectively

Have both achieved the exchange equilibrium

a.Yes

b.No