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

question 117

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 MRSXY is increasing or decreasing in X.
b. Is this consumer's marginal rate of substitution MRSXY increasing or decreasing in Y?


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