Please explain the steps to get to the answers. I already have just the answers.
Adam and Eve are consumers in a 2-consumer, 2-good exchange economy. The price of X is Px, and the price of Y is $1. Each one has an initial endowment of (X=6, Y=6); therefore, each one has a "budget line" of X*Px+ Y*Py = 6*Px + 6. Adam's utility function is U = XY. The expression for Adam's marginal rate of substitution (i.e. ) is Y/X, which at his initial endowment of (6, 6) has the value of 1. Adam's demand for X as a function of the price of X is X = 3 + 3/PX.
If Eve's utility function is,
find: (i) the expression for Eve's marginal rate of substitution.
(ii) the value of Eve's marginal rate of substitution at her initial endowment.
(iii) Eve's demand for X as a function of the price of X.
