Economic Questions//Help!!?

Question

Can someone please help me with this economy questions:

This wil be the table
Choice Units Y Units X
A 10 2
B 6 4
C 4 6
D 2 12

1.Assume consuemr budget is $12, and the prices of X and Y are $1 and $1.50,What combinations of X and Y will the consumer purchase?

2. What is the value of the MRS and the slope (Px/Py) at consumer equilibrium?

Answer 1

1. Px X + Py Y = Budget -->1X+1.5Y=12
so the answer is B, 6 of X and 4 of Y.

2. Px/Py=0.667 MRS=Y/X=4/6=0.667

Answer 2

37
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