1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Homework Help: Partially increasing a variable

  1. Mar 30, 2008 #1
    1. The problem statement, all variables and given/known data

    Given the utility function u(x1,x2)= (x1)^a + (x2)^a where 0<a<1

    Find the marginal substitution rate

    Find the change in the marginal substitution rate when x2 is partially increased.

    2. Relevant equations

    Marginal rate of substitution: dx2/dx1= -(du(x1,x2)/dx1)/(du(x1,x2)/dx2

    3. The attempt at a solution

    By partially derivating i get that the marginal rate of substituion (MRS) is -(ax1^(a-1))/ax2^(a-1)

    When x2 is partially increased, does it simply mean i add a constant to x2?
  2. jcsd
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook

Can you offer guidance or do you also need help?
Draft saved Draft deleted