Consider the utility function (,)=+, with =+1and =.(Verify these.)

a. is the assumption of "more is better" (non-satiation) satisfied for both goods x and y?

b. does the marginal utility of diminish, remain constant, or increase as the consumer buys more ? Explain.

c. what is ,?

d. is ,diminishing, constant, or increasing as the consumer substitutes for along an indifference curve?

e. on a graph with on the horizontal axis and on the vertical axis, draw a typical indifference curve (not necessarily exactly to scale, but should reflect whether ,is diminishing or not). Label the curve as 1.

f. on the same graph, draw a second indifference curve 2, where 2>1.