1) An individual utility function is given by U(x,y) = x·y1/2.I = $300, px = $10 and py = $5. At… 1 answer below »

1) An individual utility function is given by U(x,y) =
x·y1/2.I = $300, px = $10 and py =
$5. At the point at which this individual maximizes her utility
level, she buys ______ unit(s) of x and ______ unit(s) of y.

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1) An individual utility function is given by U(x,y) = x·y1/2.I = $300, px = $10 and py = $5. At… 1 answer below »
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2) Consider an individual whose consumption choices are between
good x and good y. Quantities of good y are illustrated on the
vertical axis and quantities of good x are illustrated on the
horizontal axis. This individual utility function is given by:
utility = xy. Suppose this individual utility level is equal to 15.
At point A (3, 5), the MRS is [m].