pset2_answers_corrected - d. X 1 =40 and X 2 =20 and...

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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.

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