Q. explain with an aid of a diagram , the effect on prices and output if households decide to spend a large share of their income
Q. Suppose an individual's whose utility function is given by
U(x, y) = 4x + 2y
a. Give two other bundles that, with this utility function, the provide the same utility as bundle (3,2).
b. What is the MRS for this utility function? Explain in 2-5 sentences.