Question: Consider the utility function, U ( x , y ) = x a y b , where a > 1 and b > 1 .

Consider the utility function, U(x,y)=xayb, where a>1 and b>1. Given this utility function, which of the following statements is FALSE?
a. The assumption that more is better is satisfied for each good.
b. The indifference curves slope downward at a decreasing rate (i.e. are convex to the origin).
c. The marginal utility of good Y decreases as Y increases, holding good x constant.
d. The MRS of x for y diminishes from left to right along an indifference curve.
Consider the utility function, U ( x , y ) = x a

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