Business, 25.01.2020 06:31, tyryceschnitker
1. the new utility function u′ = ln(u) = ln(x^a. y^b)=a*ln(x)+b*ln(y).
what is mrs_x, y of this new utility function?
2. will the mrs be still the same for each of the following transformation? explain without directly solving for mrs.
a) u′=u2
b) u′=1/u2
c) u′=1987*u−507
d) u′=eu
Answers: 1
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1. the new utility function u′ = ln(u) = ln(x^a. y^b)=a*ln(x)+b*ln(y).
what is mrs_x, y of th...
what is mrs_x, y of th...
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