Answer the following questions related to the utility function: UU(xx, yy) = 0.5xx0.4yy0.6. a. Is the “more is better” assumption satisfied for both goods? Explain. b. What type of function is this? Explain. c. Provide expressions for the marginal utilities of x and y. d. Does the marginal utility of x increase, remain constant, or diminish as the consumer buys more units of x? Explain. e. Does the marginal utility of y increase, remain constant, or diminish as the consumer buys more units of y? Explain. f. Provide an expression for the marginal rate of substitution of x for y. g. Is MRSx,y diminishing, constant, or increasing as the consumer substitutes more x for y along an indifference curve? Explain. h. On a graph with x on the horizontal axis and y on the vertical axis, draw the indifference curves for U1 and U2 where U2 has a higher value than U1.

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Answer the following questions related to the utility function: UU(xx, yy) = 0.5xx0.4yy0.6.
a. Is the “more is better” assumption satisfied for both goods? Explain.
b. What type of function is this? Explain.
c. Provide expressions for the marginal utilities of x and y.
d. Does the marginal utility of x increase, remain constant, or diminish as the consumer buys
more units of x? Explain.
e. Does the marginal utility of y increase, remain constant, or diminish as the consumer buys
more units of y? Explain.
f. Provide an expression for the marginal rate of substitution of x for y.
g. Is MRSx,y diminishing, constant, or increasing as the consumer substitutes more x for y along
an indifference curve? Explain.
h. On a graph with x on the horizontal axis and y on the vertical axis, draw the indifference
curves for U1 and U2 where U2 has a higher value than U1.

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