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1. Consider the following utility function: U(x, y) = 2 In(x) + 0.5y (a) Find the MRS of x to y and determine whether the

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1. Consider the following utility function: U(x, y) = 2 In(x) + 0.5y (a) Find the MRS of x to y and determine whether the MRS declines as x increases. (b) Find the optimal consumption bundle. Show your work. (c) Derive the indirect utility function, the expenditure function, and compensated demand functions. (d) Find the income and substitution effects for each good

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