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In all questions below, please consider two goods: X and Y with prices P X and P Y . Please consider Rei. Her current consumption
In all questions below, please consider two goods: X and Y with prices PXand PY.
- Please consider Rei. Her current consumption bundle, which is on the line of her budget constraint, is not the optimal one. By purchasing less Y and more X, she could increase her utility. Prices are PX= 5 and PY= 2. Answer the value of MRSXYsatisfying the conditions in the question. (There are many numbers satisfying the conditions. Just answer one of them.)
- Given PX= 3 and PY= 9, Erick's MUXis 6 at his optimal choice. Answer his MUY.
- When the consumption of X fell and the consumption of Y rose, how would MRSXYchange: Increase, Decrease, or No change?
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