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    Exam 4: Consumer Behavior
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    The Utility Function for a Consumer Is U = XY/(X
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The Utility Function for a Consumer Is U = XY/(X

Question 83

Question 83

Essay

The utility function for a consumer is U = XY/(X + Y), where the MUX = Y2/(X + Y)2 and MUY = X2/(X + Y)2. The utility function for a consumer is U = XY/(X + Y), where the MU<sub>X</sub> = Y<sup>2</sup>/(X + Y)<sup>2</sup> and MU<sub>Y</sub> = X<sup>2</sup>/(X + Y)<sup>2</sup>.

Correct Answer:

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a. Slope = -MRSXY = -M...

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