Question
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3 X radical y . His budget is $90 per period, the price of X is PX=$2, and the price of Y is PY=$6.
1. Graph the indifference curve when U=
36
2. What is the Tamer’s MRS between goods X
and Y at the bundle (X=8 and Y=2 )? What does the value of MRS
means? (أحسب القيمة واكتب بالكلمات ماذا تعني القيمة)
3. How much good X and good Y should he buy to maximize his
utility?
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