Calculate the mrs or the marginal rate of substitution

Assignment Help Business Economics

Reference no: EM13743912

Sam’s utility function over goods X and Y is considered to be

U(X,Y) = 10X +5Y

His income is $100 and the price of X is $2 and the price of Y is $5.

a) Calculate the MRS or the marginal rate of substitution between X and Y.

b) How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?

Reference no: EM13743912

Questions Cloud

Detailed about energy conversions and trophic levels : When a rabbit eats the lettuce in your garden, all of the energy in the lettuce is used by the rabbit. Is this statement true or false? Defend your answer. Your answer must be detailed about energy conversions and trophic levels

Price is the price elasticity of demand equal to zero : At what price is the price elasticity of demand equal to zero? When the price elasticity of demand is equal to 1, what will be the quantity demanded at this point?

Electronics products are getting smaller : The first is that electronics products are getting smaller and shoppers are increasingly buying music and movies online so not as much space is needed.

Why did economic capitalism arise from urban centers : Why did economic capitalism arise from urban centers? How do knights and castles fit into the major concepts that represent the Middle Ages?

Calculate the mrs or the marginal rate of substitution : Calculate the MRS or the marginal rate of substitution between X and Y. How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?

Electronics products are getting smaller : The first is that electronics products are getting smaller and shoppers are increasingly buying music and movies online so not as much space is needed.

Measure of wartime production capacity : Since its introduction during World War II as a measure of wartime production capacity, the Gross National Product (GNP), now routinely measured as Gross Domestic Product (GDP), has become the nation's foremost indicator of economic progress. It is n..

Determinants of trade flows-financing international trade : "Determinants of Trade Flows and Financing International Trade" Please respond to the following:

Population screening for genetic disease : Complete a writing assignment that addresses Winthrop's Natural Science General Education objectives: Population screening for genetic disease

User Account

All Pages