Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is correct? We have non-convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin We have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin We have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin
Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is correct? We have non-convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin We have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin We have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.2P
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![Suppose that the following utility function is given U(x,Y) = x+Y Which of the following is
соrect?
We have non-convex preferences since Law of diminishing Marginal Rate of
Substitution holds and indifference curves are bowed inward towards the origin
We have convex preferences since Law of diminishing Marginal Utility holds and
indifference curves are bowed outward from the origin
We have convex preferences since Law of diminishing Margina Rate of
Substitution holds and indifference curves are bowed inward towards the origin
We have convex preferences since Law of diminishing Marginal Rate of
Substitution fails to hold and indifference curves are bowedinward towards the
origin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d1894e6-ee73-41e7-9aa2-0f8f38749023%2Fae721cf3-9876-4f35-9f31-bb11dc806741%2Fxaw0egd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that the following utility function is given U(x,Y) = x+Y Which of the following is
соrect?
We have non-convex preferences since Law of diminishing Marginal Rate of
Substitution holds and indifference curves are bowed inward towards the origin
We have convex preferences since Law of diminishing Marginal Utility holds and
indifference curves are bowed outward from the origin
We have convex preferences since Law of diminishing Margina Rate of
Substitution holds and indifference curves are bowed inward towards the origin
We have convex preferences since Law of diminishing Marginal Rate of
Substitution fails to hold and indifference curves are bowedinward towards the
origin
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