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John receives utility from consuming X and Y as given by the utility function U(X,Y) = XY. The price of X is $9, and the price of Y is $12.

a. What is John's MRS (marginal rate of substitution)?.

b. What is the optimal mix (ratio) between X and Y in John's market basket?

c. John is currently consuming 15 X and 10 Y per time period. Is he consuming an optimal mix of X and Y? Explain

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9689871

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