Described by the utility function

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Jennifer’s preferences are described by the following utility function (u=x^1/2+y^1/2)!. a. Does Jennifer experience diminishing marginal utility? Prove your answer mathematically. b. Draw a graph of Jennifer’s indifference curves. c. What is the MRS when Jennifer consumes x = 1 and y = 25? d. If Jennifer’s wealth is $200, Px = 2 and Py = 5, what is Jennifer’s optimal consumption bundle? e. What is her optimal consumption bundle if her wealth increases to $500? f. How much of good x does Jennifer consume if the price of good x decreases to 1? g. How much of good y does Jennifer consume if the price of good x decreases to 1?

Reference no: EM131242317

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