Gene has the following utility function u xy 2y the px 4, Ask an Expert

Economics

Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.

a. Find Gene’s MRSx,y

b. Is the MRSx,y increasing, decreasing, or constant with respect to X?

c. What is the slope of the budget constraint?

d. Find the optimal X and Y.

e. At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91423337

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