1. Business
  2. Economics
  3. question 5 reshads preferences over goods 1 and 2 are...

Question: question 5 reshads preferences over goods 1 and 2 are...

Question details

QUESTION 5 Reshads preferences over goods 1 and 2 are given by the following utility function: Uq1. 42) Reshads income is $60 and the prices are given by p1-3 and p2-2. Select all that applies: 1+q1 42 41 a. Marginal rate of substitution for his preferences is given by MRS12 When he consumes zero amount of good 1, his MRS is equal to 1. c. It is optimal for him to consume 20 units of good 1. @dㆎt is optimal for him to consume 30 units of good 2. ■ eff the price of good 1 doubles, he will increase his consumption of good 2.
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution