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Consider the following graph: a)    Determine the value for the Marginal Rate...

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Consider the following graph:

a)  

Determine the value for the Marginal Rate

of Substitution (MRS) at the point where the individual’s utility is maximized.

(10 points)

b)  

Assume that the individual’s income is

equal to 400 euros/week, what is the price of one meter of housing per week?

(10 points)

c) If the price of housing obtained previously increases to 13 euros/m2 per week, and the individual's income increases to 520 euros/week, how should the feasible space of consumption change? (10 points)

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