Given the utility function U = 10X1.5Y0.5, a. show and discuss if the individual is experience diminishing marginal utility. b.  calculate the MRSXY and interpret your computed value. Would you say that this individual prefers more balanced bundles over extremes? Support your claim. c. and suppose prices of goods PX = 10, PY = 5, and income I = 400, solve for the optimal levels of X, Y, and U using the Lagrange Multiplier Method and graphically illustrate the resulting substitution, income, and net effects if the price of good Y is doubled, cet. par.

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