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 is increasing or decreasing in Y?
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a. First calculate: 
. This is decreasin...View Answer
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Correct Answer:
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. This is decreasin...View Answer
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