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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)


Definitions:

Self-Analysis

The process of examining one's own thoughts, feelings, and behaviors to gain insight or improve self-understanding.

Openness

The willingness to consider new ideas, experiences, and the vulnerability to be open to emotions and thoughts.

Conscientiousness

A personality trait characterized by being diligent, careful, thorough, organized, and vigilant in one’s endeavors and responsibilities.

Agreeableness

A personality trait characterized by kindness, cooperation, and a tendency towards harmonious social interactions.

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