1. Business
  2. Economics
  3. 4 consider the utility function uxy iny a find the...

Question: 4 consider the utility function uxy iny a find the...

Question details

4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution