Question: Given the utility function: U(x,y) = x 1/3 y 2/3 , where x and y are goods and 1/3 and 2/3 are constants, given that

  1. Given the utility function: U(x,y) = x1/3y2/3, where x and y are goods and 1/3 and 2/3 are constants,

given that MUx =1/3x-2/3y2/3

And MUy = 2/3x1/3y-1/3

  1. Obtain the Marginal Rate of Substitution MRSxy.
  2. (Explain in 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)

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