Question

If a consumer has a utility function u(x1, x2) = x1x4
2, what fraction of
her income will she spend on good 2?

Answer 1

Answer:

MRS(2,3) = −9/10 for utility function U(x1, x2) = x3. 1x5. 2 has the ... away, he would have to receive approximately 0.00001 × ( 9. 10. )= ... (Marginal utility per dollar spent is equalized. )