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TRUE OR FALSE QUESTION please explain the reason briefly （3 sentences） 3) Max’s utility function is...

TRUE OR FALSE QUESTION please explain the reason briefly （3 sentences）

3) Max’s utility function is U(x,y) = (x+2)(y+1). If his consumption of both x and yare doubled, then his marginal rate of substitution between x and y remains constant.

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Answer #1

False, we can derive marginal rate of subsitution in below and we can say that, if values are doubled for X and Y, MRS will change and it is not a constant.

False, Given utility fun tion; u(x, y) = (x + 2) (y11) U (x, y) = xy + x + 2y + 2 we know that Morgenal rate of substitution;

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