Clara's utility function is U(x, y)= (x + 2)(y + 1).If her consumption of both x and y are doubled, then her marginal rate of substitution between x and y remains constant.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) depends on the ratio of the marginal utilities of x and y. Doubling consumption of both goods changes the levels of utility derived from each, thus potentially altering the MRS, especially since the utility function provided does not exhibit constant elasticity or proportionality that would keep MRS constant under scale changes.

Clara's Utility Function Is U(x, Y)= (X + 2)(y