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Exercise 2 Suppose Becky's preference can be represented by the utility function u(I, y) = (x+3) - 2y = 2 . x . y + 6y. 1. Derive Becky's marginal rate of substitution at any general point (x, y) E R?, i.e. find the function MRS(x, y). 2. Does Becky's utility function exhibit a strictly diminishing marginal rate of substitution? 3. Compute MRS (3, 2), i.e. the marginal rate of substitution at the bundle (r, y) = (3,2) that contains three units of the first good and two units of the second good. Interpret your result. 4. Find all consumption bundles (x, y) E R. with MRS(x, y) = 1. 5. Does this utility function belong to any of the special classes of utility functions that we have discussed? 6. Draw some indifference curves and illustrate your previous results in the diagram