Suppose That a Consumer's Utility Function Can Be Written U(X,Y)

question 43

Essay

Suppose that a consumer's utility function can be written U(X,Y) = XY².
a. Use calculus to determine whether this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in X.
b. Is this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in Y?

---

Definitions:

Valence Electrons

Electrons in the outer shell of an atom that are available for bonding with other atoms.

Nucleus

The center or middle.

Atom Contains

Atoms consist of a nucleus made of protons and neutrons, surrounded by electrons in orbital shells.

Atomic Number

The atomic number is equal to the number of protons (positively charged particles) in the nucleus of an atom.