MRS

between 1 and T2. . Utility functions and preferences. A consumer is choosing between three bundles composed of different amounts of pears and Snickers bars. Bundle a contains 3 pears and 3 snickers. Bundle b contains 5 pears and 5 snickers. Bundle c contains 1 pear and 9 snickers. Find a utility function that (1) is consistent with these preferences if b > a and c > b, and (2) has a strictly decreasing MRS between the 2 goods. . Marginal rates of substitution (II). Suppose Xiomara has a utility function u(X1, X2, X3) = 2712 0.2 + min(X2, X3)