Question
Given the following marginal utility schedule for good X and good Y for an individual A, given that the price of X and the
Given the following marginal utility schedule for good X and good Y for an individual A, given that the price of X and the price of Y are both $10, and that the individual spends all his income of $70 on X and Y, Qx MUX 2 3 11 9 Qy 6 5 MUY 12 9 1 15 48 4 6 3 36 6 5 425 6312 1. Provide the slope of the budget line 2. Estimate the MRS at the optimum 110- 7 3. Indicate how much of X and Y the individual should purchase to maximize utility.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
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