market rate of substitution problem economics

Economics
Tutor: None Selected Time limit: 1 Day

                Draw the opportunity set of a consumer with an income of $1200 who faces prices 

of Px = 10 and Py = 5.  What is the market rate of substitution between the two goods?

Feb 24th, 2015

Px * x+ py * y =1200

10x+5y ≤ 1200

Market rate of substitution =10/5 =2

Feb 24th, 2015

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Feb 24th, 2015
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