Essay
A consumer has U = X0.5Y0.5 for a utility function, with MUx = 0.5 X-0.5Y0.5 and MUy = 0.5 X0.5Y-0.5. If she has income of $100, the price of X is $5, and the price of Y is $10, this consumer will use _____units of X and _____units of Y in equilibrium.
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Set MRS = PX/Py. The MRS for this consumer...View Answer
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