Question
A consumer's utility function is u = 10X0.2 + Y0.8 a. Derive the marginal utility functions for goods X and Y, and the marginal rate
A consumer's utility function is u = 10X0.2 + Y0.8
a. Derive the marginal utility functions for goods X and Y, and the marginal rate of substitution
b. Assume that a consumer has 3 units of good X and 5 units of good Y
c. Calculate the change in utility associated with an additional unit of X, all else equal.
d. How many units of good Y is this consumer willing to give up for an additional unit of X, while the total utility is held constant?
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Labor and Employment Law Text and Cases
Authors: David Twomey
15th edition
1133188281, 978-1133711841, 1133711847, 978-1285247632, 978-1133188285
