3.8 Example 3.3 shows that the MRS for the Cobb-Douglas function U(X, Y )
X Y is given by MRS
(Y/X ).

a. Does this result depend on whether

1? Does this sum have any relevance to the theory of choice?

b. For commodity bundles for which Y
X, how does the MRS depend on the values of

and ? Develop an intuitive explanation of why if
, MRS 1. Illustrate your argument with a graph.