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W/ N W / N Suppose that a consumer's utility is given by u (x,y) = 2x , in which case the marginal utilities will
W/ N W / N Suppose that a consumer's utility is given by u (x,y) = 2x , in which case the marginal utilities will be given by MUx = 2y 4x and MU, = , respectively. What is the marginal rate of W N w/ - 3x substitution when y = 10 and X = 5, and how should this be interpreted? O -1, which means that in order to obtain one more unit of x, the consumer would be willing to give up 1 unit of y. O -1/2, which means that in order to obtain one more unit of x, the consumer would be willing to give up 1/2 unit of y. O -2, which means that in order to obtain one more unit of y, the consumer would be willing to give up 2 units of x. O -1/2, which means that in order to obtain one more unit of y, the consumer would be willing to give up 1/2 unit of x
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