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Q1:
Charlie likes both apples and bananas.He consumers nothing else.The consumption bundle where Charlie consumes XA bushels of apples per year and XB bushels of bananas per year is written as (XA,XB). Last year,Charlie consumed 20 bushels of apples and 5 bushels of bananas. It happens that the set of consumption bundles (XA,XB) such that Charlie is indifferent between (XA,XB) and (20,5)is the set of all bundles such that XB=100/XA. The set of bundles(XA,XB) such that Charlie is just indifferent between (XA,XB) and the bundle (10.15) is the set of bumdles such that XB=150/XA
For each of the following statements abouty Charlie's preferences, write "true"or "false"
a)(30,5)~(10,15)
b)(10,15)>(20,5)
c)(20.5)>~(10,10)
d)(24,4)>~(11.9.1)
e)(11,14)>(2,49)
ps: what does "~" ">" :>~" mean?????????? How to solve this problem?
Q2:
Ambrose. two o f his indifference curves. One indifference curve had the equation X2=20-4根号X1, and another indfference curve had the equation X2=24-4根号X1, where X1 is his consumption of nuts and X2 is his consumption of berries. Now it can be told that Amborose has quasilinear utility. In fact, his preference can be represented by the utility function U(X1,X2)=4根号X1+X2
what is Ambrose's marginal rate of substitution.MRS(X1,X2), when he is consuming the bundle (9,10)?
Thanks!!!!!!!!!!
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