Question : What is the value of MPS in the following savings function S= -100+0.2Y and also determine saving at the Y=1000.
Option 1: -100, 100
Option 2: 0.2, 100
Option 3: 0.8, 100
Option 4: None of the above.
Correct Answer: 0.2, 100
Solution : S= -100+0.2Y
MPS= 0.2
S= -100+0.2(1000)
S= 100
Hence, Option B is correct.
Question : Determine the value of MPS & MPC from the following consumption function, C= 75+0.8Y.
Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.
Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.
Question : A consumer's utility function is $\mathrm{U}=\mathrm{X}^{\wedge} 2+\mathrm{Y}^{\wedge} 2$. If the consumer is currently consuming $X=3$ and $Y=4$, what is the marginal rate of substitution (MRS) of $\mathrm{X}$ for $\mathrm{Y}$ ?
Question : A consumer's utility function is $U=X+2 Y$. If the consumer is currently consuming $\mathrm{X}=4$ and $\mathrm{Y}=6$, what is the marginal rate of substitution (MRS) of $\mathrm{X}$ for $\mathrm{Y}$ ?
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