g00095124 g00095124

09-02-2024
Social Studies

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2.Meher has preferences represented by the utility function U(x, y)= 10x 5y. Calculate the Marginal Rate of Substitution between x and y. Suppose Meher consumes 10 units of good x and 9 units of good y. If her consumption of good x is lowered to 1, how many units of y must she have to be exactly as well off as before? Does the trade-off match the MRS that you have calculated?

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