Question
1)Consider the utility function: U = 3x^2+5y with Mux = 6x and MUy = 5. a.Is the assumption that more is better satisfied for both
1)Consider the utility function: U = 3x^2+5y with Mux = 6x and MUy = 5.
a.Is the assumption that more is better satisfied for both goods?
b.What is the MRS for this utility function?
c.Is the MRS increasing, decreasing, or remining constant as the consumer substitutes X for Y along the indifference curve?
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
