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Consider the utility function U(X, Y ) = 3X + ln(Y ). How many of the following statements are true? The corresponding indiference curves slope
Consider the utility function U(X, Y ) = 3X + ln(Y ). How many of the following statements are true?
The corresponding indiference curves slope downward at a decreasing rate.
Preferences are monotonic in both goods.
The consumer needs to be compensated with increasing amounts of good X in order to be willing to give up each additional unit of good Y .
Good Y exhibits a diminishing marginal utility.
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