Question
1.Consider a consumer with utility u(x1,x2) = x1x2. a.Plot the indifference curve that passes through (3,4) b.Consider two bundles: A = (3,4) and B=(5,3). Which
1.Consider a consumer with utility u(x1,x2) = x1x2.
a.Plot the indifference curve that passes through (3,4)
b.Consider two bundles: A = (3,4) and B=(5,3). Which one does the consumer prefer?
c.Compute the marginal utilities for both goods.
d.Compute the marginal rate of substitution at the point (3,4).
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
