1.The Marginal Rate of Substitution & Utility

Given the data below, find the MRS and complete the table Bundle Units of good x Units of good y MRS = y₁-y₂/x₁-x₂

A 10 (x₁) 60 (y₁) 0

B 20 (x₂) 40 (y₂) Ex. 60-40/10-20= 2

C 40 (x₃) 20 (y₃) (1)

D 70 (x₄) 10 (y₄) (2)

Bundle Units of good x Units of good y MRS

M 10 60 (3)

N 30 50 (4)

Q 60 40 (5)