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Individuals Derive Utility from Picnics,p,and Kayak Trips,k

Question 63

Multiple Choice

Individuals derive utility from picnics,p,and kayak trips,k.Assuming that an individual's utility is U(p,k) = k0.5p0.5 and income is $100,what is the marginal rate of substitution (MRS) between picnics and kayak trips?


A) MRS = 1.
B) MRS = -1.
C) MRS = - Individuals derive utility from picnics,p,and kayak trips,k.Assuming that an individual's utility is U(p,k) = k<sup>0.5</sup>p<sup>0.</sup><sup>5</sup> and income is $100,what is the marginal rate of substitution (MRS) between picnics and kayak trips? A) MRS = 1. B) MRS = -1. C) MRS = - D) There is no substitution because picnics and kayak trips are perfect complements.
D) There is no substitution because picnics and kayak trips are perfect complements.

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