Question
2. Given the utility function U(x; y)=xy, and Px=3 while Py=2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium
2. Given the utility function U(x; y)=xy, and Px=3 while Py=2, with budget m=100. Measure the MRS, show the budget line and calculate the equilibrium level of consumption for x and y. If the price of y doubles, what is the new level of consumption for both x and y?.
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
