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Suppose a consumer considers good X and good Y to be perfect substitutes. They are willing to trade 3 units of good Y for 1
Suppose a consumer considers good X and good Y to be perfect substitutes. They are willing to trade 3 units of good Y for 1 unit of good X. The price of good X is $4 and the price of good Y is $2. Also, assume the consumer has $24 to spend on X and Y. If the consumer maximizes utility subject to their budget constraint, how much of good X and how much of good Y will they buy? (Hint: Consider how the MRS compares to the MRT.) Note: You will upload this work, along with all the other questions, at the end of the exam. Enter the word "Finished" into the text-box below when ready to move on
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