Consider the Following Utility Function: U(x,y)= 2y + X^1/3

question 15

Essay

Consider the following utility function: U(x,y)= 2y + x^1/3
a)What is the shape of an indifference curve (e.g., smooth, kinked, straight line)? Is the MRS diminishing?
b)How does the MRS change as you move from the indifference curve associated with the utility number 8 to the indifference curve associated with the utility number 27 when x = 2? What about when x = 3? (Calculus required)

---

Definitions:

Shift

A change in the position of the supply curve or demand curve in a market, indicating a change in market conditions.

Efficiency Loss

The loss of economic efficiency in a market, which can occur due to various reasons, such as taxes, subsidies, or monopolies.

Tax Revenue

The income collected by governments through taxation from individuals and businesses.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no individual can be effectively excluded from their use, and one person's use does not reduce availability to others.