Draw a typical indifference curve

Question

Problem

Consider the utility function U(x, y) 3x + y, with MU_x = 3 and MU_y = 1.

a) Is the assumption that more is better satisfied for both goods?

b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain.

c) What is MRS_x,y?

d) Is MRSx,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve?

e) On a graph with x on the horizontal axis and y on the vertical axis, draw a typical indifference curve (it need not be exactly to scale, but it needs to reflect accurately whether there is a diminishing MRS_x,y). Also indicate on your graph whether the indifference curve will intersect either or both axes. Label the curve U₁.

f) On the same graph draw a second indifference curve U₂, with U₂ > U₁

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.