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Given the following utility function: and marginal utilities: A consumer facing the following prices: ChOOSES 10 consum e: U=5X+Y MUX=5,MUY=1 Px=$10, Py =5 7 units
Given the following utility function: and marginal utilities: A consumer facing the following prices: ChOOSES 10 consum e: U=5X+Y MUX=5,MUY=1 Px=$10, Py =5 7 units of good X and 9 units of good Y. Assume that graphically good X is on the horizontal axis and good Y is on the vertical axis. Given this consumption bundle, the marginal rate of substitution is equal to - (Round your answer to two decimal places. Note that the minus sign is already included). Given this value, the consumer should consume V in order to maximize his/her utility
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