Question: Answer each part of this question for the utility function given. Justify your answers in words and using the appropriate derivatives. a . U (
Answer each part of this question for the utility function given. Justify your answers in words and using the appropriate derivatives.
a; Is the assumption that more is better satisfied for each good? points
b; Does the marginal utility of diminish, remain constant, or increase as the consumer buys more holding constant? points
c; Does the MRS of for diminish, remain constant, or increase as the consumer substitutes for to the right along an indifference curve? points
d; Are the associated indifference curves downward sloping and convex to the origin decreasing at a decreasing rate points
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