Question

Given utility function U = X^0.5 Y^0.5 where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr. A) Find the utility maximizing combinations of X and Y. B) Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result.

Answer 1

Answer:

I don't know

Explanation:

please mark as brainlest

Answer 2

Answer:

Given utility function U = X^0.5 Y^0.5 where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr. A) Find the utility maximizing combinations of X and Y. B) Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result.