Question: A consumer has utility given by U(x, y) -5x02,08 (a) Derive a general expression for the Marginal Rate of Substitution (MRS). Show your steps.

A consumer has utility given by U(x, y) -5x02,08 (a) Derive a

A consumer has utility given by U(x, y) -5x02,08 (a) Derive a general expression for the Marginal Rate of Substitution (MRS). Show your steps. (Take absolute value, i.e. MRS), so that it is interpreted as the "magnitude of MRS") (b) Is the magnitude of MRS diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve (i.e. increase the amount of x)? How do you know? Explain.

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