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Corrections to Problem Set 2 answers
3a. MRS = 2X
2
/3X
1
b. solving 2 equations and 2 unknowns, 2P
2
X
2
= 3P
1
X
1
and P
1
X
1
+P
2
X
2
=I
yields:
X
1
=2I/5P1 and X
2
=3I/5P2.
c. X
1
=20 and X
2
=40 and U=2ln(20)+3ln(40)
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Unformatted text preview: d. X 1 =40 and X 2 =20 and U=2ln(40)+3ln(40) 4a. MRS=2X 2 b. solving 2 equations in 2 unknowns yields: X 2 =(P 1 /2P 2 ) and X 1 =I/P 1 – 1/2...
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This note was uploaded on 09/15/2009 for the course ECON 420 K taught by Professor Bronars during the Fall '09 term at University of Texas at Austin.
 Fall '09
 Bronars

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