# Question: please explain and answer thank you a consumers preferences are...

###### Question details

Please explain and answer. Thank you!

- A consumer’s preferences are represented by: U(x,y) =
2
+
, (MU
_{x}= , MU_{y}= )

Given this utility function, the consumer needs to give up increasing amounts of good X in order to consume additional amounts of good Y and remain as well off.

a) True (b) False

- A consumer’s preferences are represented by: U(x,y) = 2ln(x) +
ln(y), (MU
_{x}= 2/x, MU_{y}= 1/y)

Given this utility function, the MRS_{xy}decreases along the indifference curve as X increases.

(a) True (b) False

- Consider the utility function: U(x,y) = x + y + xy,
(MU
_{x}= y + 1, MU_{y}= x + 1)

Given this utility function, the marginal utility of good Y increases as Y increases, holding X constant. Or, the same, good Y becomes more and more valuable for consumer as he buys more and more good Y, holding constant consumption of good X.

(a) True (b) False

- A consumer’s preferences are represented by: U(x,y) = x + y +
xy, (MU
_{x}= y + 1, MU_{y}= x + 1)

Given this utility function, the assumption that more is better is satisfied for both goods. Or, the same. Both goods are "good" goods.

(a) True (b) False

- An increase in the price of good X and an equal percentage
increase in the price of good Y decreases the X-intercept and the
Y-intercept, but does not change the slope of the budget
line.

(a) True (b) False