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Question: bc 301 homework 1 spring 2019 3 25 points consider...

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BC 301 Homework 1 Spring 2019 3. (25 points) Consider a consumer who uses two units of X for every one u nit of Y Hence, this consumer has the following utility function: U(X, Y) = 2X + Y (a) (5 points) State the type of preferences this consumer has for goods X and Y (b) (5 points) Derive this consumers marginal rate of substitution, MU. How does it depend on X and Y? (c) (5 points) Draw an indifference curve for this consumer that is clearly labeled.Homework 1 Spring 2019 EC 301 (d) (5 points) If P goods X and Y Py S5 and I $20, determine the optimal quantities of (e) (5 points) If Px-$5, Py = $2, and 1-$20, determine the optimal quantities of goods X and Y Page 6

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