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) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods...

) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y are $3 and $5, respectively, and the consumer's income is $150

. a. Find the MRS for this consumer for any given bundle (x,y)

. b. Find the optimal consumption bundle for this consumer.

c. Suppose the price of good x doubles. How much income is required so that the Econ 201 Beomsoo Kim Spring 2018 consumer is able to purchase the original consumption bundle.

d. Now that the price of good x has doubled, how much income is needed for the consumer to reach the original level of utility? Is this more or less that what you found in c.?

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