Jane's Utility Function Is Given By: U(x, Y)= Xy²

question 21

Essay

Jane's utility function is given by: U(x, y)= xy².
i)Is Jane indifferent between bundles (2,1)and (1,2)?
ii)Suppose Jane consumes 3 units of x and 2 units of y. If Jane increases her consumption of x by 1 unit but decreases her consumption of y by 1 unit, will she move to a lower indifference curve?
iii)Calculate the MRS when x = 3 and y = 2. (Calculus required)

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Definitions:

Diet

The total of food consumed by a person or other organism, often referring specifically to a planned regimen of eating and drinking for health or weight-management reasons.

Salt Deficiency

A condition resulting from insufficient amounts of sodium in the blood, which can lead to symptoms like headache, nausea, and fatigue.

Salty Tastes

Pertains to one of the basic tastes, recognized by the presence of sodium ions, typically experienced from eating foods with salt.

Sweet Tastes

One of the basic tastes, perceived by the taste buds on the tongue, often associated with foods rich in sugars.