# Math Help - mrs

1. ## mrs

MRS=y/2x
price of x is $1 price of y is$3
income is \$90
how much of each good should be consumed in order to maximize utility

2. Utility is maximised when $MRS_{y,x}=\frac{P_x}{P_y}$
so $\frac{y}{2x}=\frac{1}{3} \to y=\frac{2}{3}x$ Substituting this into the B.C which is
$M=P_x x+P_y Y$,
$90=X+3Y=X+2X \to X=\frac{90}{3}=30$

So Y can be calculated using $X=30$ and substituting into the B.C, or solving MRS equal to the price ratio for X.

3. great respons on the issue. there are more math problmes that require variable results!