Question

ECNS 301 Homework # 3 Marginal Rate of Substitution 1. Fill in the following table. . Alicia likes watching DVDs (1) and listening to her favorite CDs (2). Her function is given by: (a) Find Alicia's Maringal Rate of Subsitution (MRS) for an abitrary bundle Make your life easier by taking a monotonic transformation of the utility fu (b) Plot Alicia's indifference curve that passes through the bundle (1,1). Find for this bundle and depict it on the graph. Which good is locally more (c) Let the price of a DVD be $40 and the price of a CD be $20. Alicia's

question 1, not question 2.

Answer 1

u (vu.*) = 3.ln (v.) t 5 In (n 上ㄧㄥ一二一 #14 _1_.. 젤2 2 3. 01 2 mes (. 23) : 3x3 0.9 5x2 l0 /2 2. MRS (2,3

M2 241 . ㄩ d n2 ms (2,3) 5 2 M 2. 2 5 23)33 2 0.9 5 X 10