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

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Definitions:

Genetic Variation

Differences in DNA among individuals or populations, enabling diversity within species.

Environmental Differences

Variations in the physical, chemical, and biological factors that characterize each environment and influence the life that exists there.

Genetically Determined

Traits or characteristics that are influenced by genes inherited from one's parents.

Phenotype

The set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.