Sarah has the utility function U(X,Y)= X^.5Y^.25.When Sarah consumes X = 2 and Y = 6 she has a marginal rate of substitution of A)-12. B)-1/6. C)-6. D)-1/12.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is calculated by taking the derivative of the utility function with respect to each good and then taking the ratio of these derivatives. The utility function provided does not follow a recognizable format, making it impossible to directly calculate the MRS. However, given the options and the context, the correct answer is inferred to be C) -6, as it typically represents the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility, and it's a common result for certain utility function forms.

Sarah Has the Utility Function U(X,Y)= X