Consumer at an optimum, What is the MRS Is this consumer at

Consumer at an optimum

Assignment Help Business Economics

Reference no: EM138263

Q1. Compute the elasticity of demand for Ford's automobiles (or choose a specific make / model) and Interpret what the demand tells Ford's management team?

Q2. Suppose the MUx = 4 and the MUy=2 and that the Px =10 and the Py =2.
What is the MRS Is this consumer at an optimum? If not at an optimum should the consumer buy more of the X good or more of the Y good?

Q3. Suppose that the percentage change in supply is 20%, the price elasticity of supply is 2 and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?

Reference no: EM138263

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