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Question: 8 an individuals preferences are represented by the utility function...

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8. An individuals preferences are represented by the utility function Ulx, y) . Which of the following statements is true? a. The marginal utility of x decreases as x increases, holding y constant. b. The marginal rate of substitution of x for y increases as the consumer substitutes x for y (i.e. more x and less y) along an indifference curve. c. The consumer needs to be compensated with (i.e. gain) increasing amounts of good x in order to be willing to give up each additional unit of good y and remain as well off. The indifference curves slope downward at an increasing rate. d.
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