Suppose that a consumer's utility function can be written U(X,Y) = XY².
a. Use calculus to determine whether this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in X.
b. Is this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in Y?

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The Answer of Suppose that a consumer's utility function can be written U(X,Y) = XY². a. Use calculus to determine whether this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in X. b. Is this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in Y?

Suppose That a Consumer's Utility Function Can Be Written U(X,Y)