Given utility function U= where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr. A. Find the utility maximizing combinations of X and Y. B. Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result

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Given utility function U= where PX = 12 Birr, Birr, PY =
4 Birr and the income of the consumer is, M= 240 Birr.

A.      Find the utility maximizing combinations of X and Y.

B.      Calculate marginal rate of substitution of X for Y
(MRSX,Y) at equilibrium and interpret your result

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