Homework Help

Business
Economics
please complete thank you...

Question: please complete thank you...

Question details

Please complete thank you

Q3) (based on textbook problem 3.26) Annie consumes three goods out of her income, food (F) shelter (S), and clothing (C). At her current levels of consumption, her marginal rate of substitution of food for clothing is 3 and her marginal rate of substitution of clothing for shelter is 2. a) What is her marginal rate of substitution of food for shelter? (Hint: Use the fact that MRS is a ratio of marginal utilities) b) Do you have enough information to determine her marginal utility of shelter? If so, what is it? If not, why not?

Solution by an expert tutor

Blurred Solution

This question has been solved

Subscribe to see this solution