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  3. 2 for each of the three utility functions below answer...

Question: 2 for each of the three utility functions below answer...

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2. For each of the three utility functions below, answer these questions: Does the marginal utility of good x diminish, remain constant, or increase as the consumer buys more x, holding good y constant? Justify. Does the MRS of x for y diminish, remain constant, or increase as the consumer substitutes good y for more of good x to the right along an indifference curve? Justify. . . a. U(x, y)xyb, where 0 < a < 1 and b> 0 (10 points) b. U(x,y)xby, where a >1 and b>0 (10 points) c. U(x,y)-ax + yb, where a > 0 and 0 < b < 1 (10 points)
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