3.3) (10 points) Ning's utility function that represents her preferences is U = 10X5Y0.5 3.3a) (4 points) What is her marginal rate of substitution
3.3) (10 points) Ning's utility function that represents her preferences is U = 10X5Y0.5 3.3a) (4 points) What is her marginal rate of substitution of Y for X (MRSYX)? MRSYX = 3.3b) (6 points) The price per unit of X, Px = $10, and the price per unit of Y, Py = $1. If Ning's budget to spend on Good X and Good Y is $220, what is her optimal bundle (X*, Y*)? * = Y* = unit(s). _unit(s).
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Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
