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Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25...

Mitchell’s money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell’s MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint? SHOW CALCULATIONS

A. 1/2 B. 1 C. 2 D. 4

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Economics_7634082.doc

Question:Mitchell’s money income is $150, the price of X is $2, and the price of Y is $2. Given these
prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X...

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