Assuming that Bill's MRS =5/2 and Mary's MRS=4/3, calculate Bill and Mary's value of apples (x-good) and cheese (y-good)

Economics Feb 27, 2022

Assuming that Bill's MRS =5/2 and Mary's MRS=4/3, calculate Bill and Mary's value of apples (x-good) and cheese (y-good). In addition, if the market price of apples were $4 and the market price of cheese were $2, describe how Bill's and Mary's relative value of the goods would change through exchange. (12 Points)