1. [3 points] Given the utility function: U(x,y) = , where x and y are goods and 1/3 and 2/3 are constants,

and

1. Obtain the Marginal Rate of Substitution MRSxy.
2. (non technical) what does the MRS for this utility function tell us?
3. Graph 2 indifference curves U=10 and U =14, (with at least 3 bundles for each)

1. [2 points] Given the utility function: U(x,y) = min{4x, 1/2y}, graph three indifference curves for utility level

U=4, U=8 and U=16. Make sure all relevant information if on the graph.

1 2 2. [3 points] Given the utility function: U(x.y) = xaya, where x and y are goods and 1/3 and 2/3 are constants, MUY = =x ays and MUy = = xiy a. Obtain the Marginal Rate of Substitution MRSxy. b. In your own words (non technical) what does the MRS for this utility function tell us? c. Graph 2 indifference curves U=10 and U =14, (with at least 3 bundles for each) 3. [2 points] Given the utility function: U(x.v) = min{4x, 1/2y), graph three indifference curves for utility level U=4, U=8 and U=16. Make sure all relevant information if on the graph. 4. [1 points] More is Better implies that indifference curves have a negative slope." Why is this statement true